Yellen says Republican cuts to IRS funding would be 'damaging and irresponsible'
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Treasury Secretary Janet Yellen on Tuesday defended the IRS against funding cuts proposed by Republican lawmakers in exchange for more than $14 billion in aid to Israel in its war against Hamas.
«The current proposals to cut funding for the IRS make this an especially crucial time to talk about the importance of this work,» Yellen said during remarks delivered at the IRS headquarters in Washington. «Playing politics with IRS funding is unacceptable. Cutting it would be damaging and irresponsible.»
Democrats allocated $80 billion for the IRS in a bill that President Biden signed into law last year. The influx of money is intended to improve taxpayer services and shrink the estimated $600 billion tax gap by cracking down on corporations and wealthy tax cheats.
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Treasury Secretary Janet Yellen speaks during the Independent Community Bankers Of America Capital Summit in Washington, D.C., on May 16, 2023. (Nathan Howard/Bloomberg via / Getty Images)
But the funding elicited fierce pushback from Republicans and other critics, who say that a beefed-up IRS could ultimately hurt lower-income Americans.
House Republicans led another effort to claw back some of that money last week, passing a bill mostly along party lines that would pay for $14.3 billion in aid to Israel with cuts to IRS funding. A dozen Democrats supported the measure, while two Republicans voted against it.
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GOP lawmakers said the IRS
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