Once upon a time when Congress and the president were at least trying to be serious guardians of the public purse, a proposal like aid to Israel or Ukraine would have to be "offset" with cuts to other programs. It was a modest attempt to get control of the federal budget and keep the deficit down.
But the practice has waned in recent years, a casualty of the pandemic emergency and the general laxity in budget discipline.
Republicans in the House want to subtract $14.3 billion from the IRS budget and use it to aid Israel in their war against Hamas. That $14.3 billion was part of the massive $80 billion increase to the IRS budget as part of the so-called "Inflation Reduction Act." It was to go toward "improving the customer service" of the IRS for American taxpayers and auditing the rich.
We were assured that no one who makes less than $250,000 a year would be part of the increased oversight. If you believe that, I've got some bridges over the Chicago River I can let you have for a song.
The aid to Israel is part of the $105 billion package of military and humanitarian aid to Israel, Ukraine, and Taiwan, as well as money for border security proposed by Joe Biden last week. Republicans want to split the aid to Israel from Ukraine and vote on it separately.
Democrats in Congress are adamantly opposed to splitting Ukraine and Israel's aid. They want Biden's legislative gambit to pass the hugely popular Israel aid and drag the far less popular Ukraine aid along with it.
The White House was displeased, says Karin Jean Pierre. She said in a press briefing that there is “strong bipartisan support” for the request and “politicizing our national security interests is a nonstarter.”
“Demanding offsets for meeting core national security needs of the United States—like supporting Israel and defending Ukraine from atrocities and Russian imperialism—would be a break with the normal, bipartisan process and could have devastating implications for our safety and alliances in the years ahead,” she said.
Some Republicans have had enough.
“I am tired of this stuff. I do not believe we should write another blank check to anyone, including ourselves. We must pay for it. And the American people must see that it's going to cause something if we're going to give another $14 billion to Israel. So, I'm for it. But it should be paid for. And it should be paid for with real money, not budgetary gimmicks,” Rep. Chip Roy (R-Texas), a member of the House Freedom Caucus, said.
The legislation reflects the GOP’s ongoing determination to undo the IRS expansion that Biden secured in 2022 in the Inflation Reduction Act, which boosted the agency’s funding by $80 billion to improve taxpayer services and pay for more enforcement actions against wealthy tax cheats. Biden and House Republicans agreed to repeal roughly $20 billion of that $80 billion as part of a deal in May to suspend the U.S. debt ceiling. Now, Republicans are pushing for more reductions.
The GOP bill would pare back funds for most parts of the IRS expansion, including increased enforcement and a new online portal to allow taxpayers to file their taxes for free directly with the government. The legislation excludes cuts to improved taxpayer services that have helped the IRS reduce wait times for calls.
While the proposed offset could pass the House, it's dead on arrival in the Senate. Still, it's good to see Republicans in the House thinking about offsets as a way to gain at least some control of the federal budget.
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