(CNS News) - In response to President Joe Biden’s Inflation Reduction Act, House Rep. Jim Banks (R-Ind.) introduced a bill that would rescind the bill’s funding of 87,000 new IRS Agents and provide Americans with a tax break.
On Sept. 26, Banks introduced the Defunding the IRS Army Act to “rescind” the funding of 87,000 additional IRS Agents included in the Democrats’ reconciliation bill, and “make permanent” the standard deduction in the Tax Cuts and Jobs Act.
Banks’ bill comes as a response to the Inflation Reduction Act, which was passed by Congress and signed into law by President Biden on Aug.16.
According to a White House press release from August 19, the Inflation Reduction Act will “lower the deficit and ask the ultra-wealthy and corporations to pay their fair share.” The press release asserts that “no one making under $400,000 per year will pay a penny more in taxes.”
However, a report from the Joint Committee on Taxation estimates that the 87,000 new IRS agents will raise $124 billion in revenue. Over 50% of revenue collected from Schedule C and Schedule E income audits will come from taxpayers making $50,000 or less, while only 4% to 9% of the revenue will come from taxpayers making $500,000 or more, the committee reported.
In Rep. Banks’ view, President Biden’s Inflation Reduction Act “would hit Americans with billions in new taxes and subject them to pointless and invasive IRS audits.”
“My bill would use the $80 billion that Joe Biden is sending to the IRS to partially offset a tax break for working Americans,” said Banks.
Aside from preventing these mass audits from taking place, Banks’ legislation will also increase the standard deduction.
According to the Tax Foundation, “the standard deduction is the alternative to itemized deductions and simplifies tax filing for taxpayers and administrators.”
The Tax Cuts and Jobs Act, which was passed by Congress in December 2017 and signed into law by former President Donald Trump, “nearly doubled the standard deduction through 2025.” As a result of this increase, nine out of ten voters opt for the standard deduction over the itemized option.
Banks’ proposed legislation would make these increases permanent, and also further increase the standard deduction by:
$14,025 for individuals beginning in FY 2023.
$21,060 for Heads of Households in FY 2023.
$28,050 for families beginning in FY 2023.
Furthermore, “these amounts would then increase by inflation every fiscal year as under current law,” the bill reads.
According to Banks, his legislation signals a clear distinction between the two parties’ approaches to taxation:
“Democrats are treating hardworking taxpayers as suspected cheats and squeezing them dry to pay for their radical agenda, while House Republicans are trying to lower inflation by easing Americans’ tax burden.”
Last Friday in Pennsylvania, House Republicans introduced their “Commitment to America,” which includes the GOP’s legislative goals if they are to take back the House majority in November.
During the presentation, House Minority Leader Kevin McCarthy (R-Calif.) announced his plan to tackle what Banks’ bill covers. “On our very first bill, we’re going to repeal 87,000 IRS agents,” said McCarthy in reference to the 87,000 IRS agents added by the passing of the Inflation Reduction Act.
“I’d like to thank Leader McCarthy for his commitment and leadership on this issue and for pledging to immediately defund Biden’s IRS army,” Rep. Banks said about McCarthy’s statement.