Lawmakers discontinue plans to fund spending through tax increases

Republican senators have rejected plans to spend another $ 40 billion on tax enforcement to support the payment of a $ 1 billion bipartisan infrastructure package, one party negotiator said. ..

Ohio Republican Senator and one of the 22 negotiating members, Rob Portman, proposed on Sunday to strengthen the Internal Revenue Service in response to a backlash from fellow Republicans. He said he decided not to include it.

Members of the bipartisan group continued to meet with Senate majority leader Chuck Schumer over the weekend to shatter the details of the proposed bill. promised Vote within a few days to test package support.

Portman rejected Democrat’s proposal to strengthen the IRS on Sunday after Republican senators learned that U.S. President Joe Biden intends to include similar measures in his budget later this year. Said he did.

“One of the reasons it wasn’t part of the proposal was that we had pushbacks,” Portman told CNN. “Another reason is that we found that the Democratic Party was trying to put a proposal in the settlement package. Not only is it similar to what we had, but the IRS is much more enforced. Thing.”

Treasury official Natasha Sarin defended plans to increase the IRS budget.Just a few hours from Portman’s comment She tweeted: “The IRS auditors are fewer than at any time since World War II. It’s no wonder that the tax gap is at the expense of 3% of US GDP / year, and fair distribution. Is disproportionate from $$ not paying. “

Biden Announced last month Senators from both parties have reached an agreement to spend about $ 1 billion on roads, bridges and broadband networks over the next eight years. The deal was seen as a victory for the president, who prioritized infrastructure spending but promised to return interparty cooperation to Washington.

However, since then, both negotiators have sought to translate the agreement into legislative documents that may pass both parliaments.

One of the key questions is how to pay billions of dollars in additional spending.

The Democratic Party is lobbying to significantly raise the IRS budget, which fell by 20% between 2010 and 2018. According to the Congressional Budget Office, 22% of staff have been reduced.

These cuts have widened the US tax gap.Ministry of Finance Estimated In 2019, approximately $ 580 billion of taxes were unpaid. From Approximately $ 400 billion annually from 2011 to 2013.

The CBO estimates that Congress can increase revenues by $ 100 billion by spending an additional $ 40 billion on tax collection over a decade. However, the proposal raised concerns among Republicans who had long been critical of the IRS.

“What we don’t want is an overly intrusive IRS that breaks into small businesses and creates an improper burden,” Portman said last month.

Portman also rejected Schumer’s attempt to pressure Senators in time for this week’s test vote. A Republican senator said:Not so with Mitch McConnell [the Senate minority leader], by the way. Therefore, there should be no arbitrary deadline for Wednesday. “

Lawmakers discontinue plans to fund spending through tax increases

Source link Lawmakers discontinue plans to fund spending through tax increases

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