Enforcement Funding Debated
The proposed budget sparked a debate over its impact on tax enforcement. The Trump administration requested $4.1 billion for IRS enforcement for fiscal year 2027, an 18% reduction from fiscal year 2026. The cuts would come as additional funding for the IRS via the Inflation Reduction Act runs dry, after multiple rescissions.
Ranking Member Jack Reed (D-RI) challenged the reduction, citing the IRS’ own justification that every dollar spent on enforcement yields an $11 return. Senator Chris Van Hollen (D-MD) echoed this, arguing the cuts provide a “windfall to very wealthy people” who don’t pay their taxes.
To dig deeper, visit the original article on the Thomson Reuters blog.