WASHINGTON – Senator Chuck Grassley (R-Iowa), former chairman and senior member of the Senate Finance Committee, joined Finance Committee Ranking Member Mike Crapo (R-Idaho) and their Republican committee colleagues in reintroducing a bill to prevent the IRS from using its $80 billion infusion of taxpayer dollars to squeeze more revenue out of hardworking taxpayers who earn less than $400,000 per year.
“Amplifying the enforcement powers of the IRS without robust oversight is an invitation for federal overreach. This bill ensures that the IRS can’t use its $80 billion windfall from the Democrats’ partisan spending bill to target the middle class – those who President Biden pledged not to burden with more taxes,” Grassley said.
“Advocates claim they do not intend for the IRS to increase audits on working families, but estimates show the IRA’s tax revenue goals for this funding cannot be met without also increasing enforcement on those making less than $400,000 per year. Instead of unenforceable edicts, this legislation would prevent the IRS from using its new, massive supplemental funding to increase audits on small businesses and working families,” Crapo said.
Estimates from the Congressional Budget Office confirmed that increased audits would result in billions of dollars in additional revenue being collected from working Americans. The non-partisan Joint Committee on Taxation also estimates a large portion of uncollected tax revenue comes from small businesses and sole proprietors, many of whom make less than $400,000 per year.
This legislation would codify the Treasury Secretary’s unenforceable pledge to not use Inflation Reduction Act (IRA) funding to increase audits on anyone making less than $400,000 per year.
The bill is also co-sponsored by John Cornyn (R-Texas), John Thune (R-S.D.), Tim Scott (R-S.C.), Bill Cassidy (R-La.), James Lankford (R-Okla.), Steve Daines (R-Mont.), Todd Young (R-Ind.), John Barrasso (R-Wyo.), Ron Johnson (R-Wis.), Thom Tillis (R-N.C.) and Marsha Blackburn (R-Tenn.).
For bill text, click here.
