Yellen warns against damaging Republican cuts to IRS funding
Treasury Secretary Janet Yellen defended the IRS against Republican threats to cut its funding, stating that such cuts would be damaging and irresponsible. The IRS received $80 billion in funding from the Democrats' Inflation Reduction Act to crack down on tax cheats and improve taxpayer service. House Republicans recently voted to rescind $14.3 billion from the IRS to fund an emergency aid package for Israel, but the bill is unlikely to pass in the Democrat-controlled Senate. Independent budget experts warn that cutting IRS funding would increase the deficit and reduce tax revenue. The Biden administration aims to show how the new funding is improving taxpayer services and enforcement efforts, with the IRS already making progress in reducing call wait times, digitizing tax returns, and providing more online tools and in-person support.