IRS to Continue Increasing Budget Request Indefinitely
TL/DR –
President Joe Biden, in his fiscal 2025 budget proposal, asked Congress to provide an unprecedented $104 billion in extra funding for the IRS, on top of its $12.3 billion annual budget and the $80 billion it already received through the Inflation Reduction Act. The IRS justifies this request as necessary to maintain IRS employees and update its systems, but concerns have been raised about the lack of detailed justification for such massive amounts and the agency’s history of lackluster results despite decades of stable funding. The article argues that the IRS needs to be held accountable for its choices, become more efficient, and provide full transparency to Congress and taxpayers before any additional funding is requested.
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President Biden’s 2025 Budget Proposes Major Increase In IRS Funding
President Joe Biden has proposed a significant $104 billion boost in funding for the IRS in his 2025 budget, in addition to the $12.3 billion annual budget and an $80 billion boost from the Inflation Reduction Act.
This request comes after a recent hearing during which IRS Commissioner Danny Werfel stated these additional funds are to become a new norm. This raises questions about the IRS’s expanding budget.
Historically, IRS’s budgets have remained largely consistent over the past two decades, with an increase from $10.4 billion in 2004 to $12.6 billion in 2022. Yet, the proposed budget for 2025 marks a significant rise, with no clear end in sight.
The IRS’s rationale for this continued increase is the need to maintain employees and update systems. However, there’s concern about the vagueness of the usage of these funds, with the president’s budget appearing to adopt a “spend more, no questions asked” stance.
The IRS has faced criticism for its failure to plan and identify efficiencies, despite receiving stable funding for years. The $80 billion funds aimed to modernize the IRS, but its impact on improving services to taxpayers remains unclear.
Improvements to IRS operations are needed, but not with high costs like $80 billion or the proposed $104 billion. Modernization should make IRS more efficient, reducing its annual funding requirements.
However, the current proposal seems to permanently fund an inefficient IRS. Much of the supplemental funding has been allocated to enforcement and unnecessary projects, such as the redundant Direct File, costing $1,000 per taxpayer.
Before requesting additional funding, the IRS needs to account for its spending, improve its efficiency, and provide full transparency. It’s crucial to ensure that taxpayer dollars are not wasted on redundant programs or heavy-handed enforcement at the expense of taxpayer services.
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