Yellen warns against damaging Republican cuts to IRS funding

Treasury Secretary Janet Yellen defended the IRS against proposed funding cuts by Republican lawmakers, stating that it would be damaging and irresponsible. The funding cuts were suggested in exchange for aid to Israel in its conflict with Hamas. Yellen emphasized the importance of IRS funding and criticized playing politics with it. The IRS received $80 billion in funding from Democrats last year to improve taxpayer services and crack down on tax evasion. Republicans argue that a stronger IRS could harm lower-income Americans, but the Congressional Budget Office projected that reducing funding would increase the federal deficit. Yellen highlighted the modernization efforts at the IRS, including investments in customer service and technology. The agency has already collected $160 million in back taxes this year as part of its crackdown on tax evaders.