With Republicans and the White House dipping into the $80 billion to fund other programs, some Democrats fear the windfall will be whittled away even more in years to come.
That is an altogether different threat than had been the focus in Washington before the debt fight. Attention had been focused on Republicans’ promise to repeal the entire $80 billion, something they campaigned on in the run-up to the midterm elections but was never particularly likely, not with President Joe Biden in office and Democrats in charge of the Senate.
The plan would actually increase the deficit by $19 billion, according to a Congressional Budget Office estimate provided to Senate Budget Committee Chair. Cutting IRS enforcement costs the government money because auditors bring in far more revenue than it costs to employ them. While the plan would save $21.4 billion in spending, CBO predicts it would reduce future tax collections by $40.4 billion.
That’s partly because it takes a long time to hire and train sophisticated auditors, something that will be particularly tough in a tight labor market.“You can readily see the risk, which is that the next time anyone needs money, they’ll say, ‘Well, there’s $60 billion there,’” said former IRS Commissioner Charles Rossotti.
“They’re going to have to show on the merits why the money is needed at that particular time,” said one former longtime tax aide, who was granted anonymity because he wasn’t authorized to speak publicly. “They need to show in granular detail, ‘This is what it means in terms of audits and collections.’”
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