Ways and Means Tax Subcommittee Ranking Member Thompson Releases Statement on GOP Rescission of IRS Funding

Today, Ways and Means Tax Subcommittee Ranking MemberRep. Mike Thompson (CA-04) released the following statement in response to the House GOP proposal to cut IRS funding in exchange for providing aid to Israel.

“House Republicans have decided to withhold vital aid for Israel unless Congress makes it easier for wealthy people to cheat on their taxes. Their proposal is nothing more than a cheap attempt to score political points,” said Thompson. “For every $1 cut from the IRS, the United States loses $2 in revenue – meaning this Republican “offset” actually makes the bill more expensive, not less. Attaching IRS cuts to this bill not only undermines our most important ally in the Middle East, it is the exact opposite of fiscal responsibility.

“Democrats funded the IRS because Americans agree that people should pay their fair share in taxes. The funds provided in the Inflation Reduction Act are projected to bring in $180 billion in tax revenue – an almost 2-to-1 return on investment – while simultaneously upgrading aging equipment and modernizing the IRS workforce after years of under-investment by Republicans.

“House Republicans continue to show that their priorities are the wealthy and well-connected, not fiscal responsibility and certainly not Israel. Tying vital military and humanitarian aid to unrelated and counterproductive IRS cuts is a mistake, and I urge my colleagues across the aisle to put forward a clean foreign aid bill.”