The House Republicans are now planning to slash the IRS’s budget and eliminate the free online tax filing service. Now, before you get bored and start yawning let me explain it in a more entertaining and easy to understand format for you!
What’s Happening?
Let us now visualize the IRS to be a big money jar where it assists us in counting our money. The Republicans in the House wish to confiscate some money from this jar, and prevent the IRS from giving us free money-counting utensils.
The Big Cuts
The House Appropriations Committee, which may be compared to a large team of money managers, has recently proposed a new plan. They want to cut the IRS budget by $2.2 billion for the year 2025. That means the IRS would get $10.1 billion instead of what they got last year. They especially want to take away $2 billion that the IRS uses to catch money thieves (tax evaders).
Free Tax Filing System: Good riddance?
The IRS recently made a free on line tax filing system permanent and pledged to add more states. You get a free application that will assist you in counting your money in a similar manner. But the House Republicans would like to prevent the IRS from using any of their funds to operate this free application. Some people claim that Congress didn’t bless this.
Why the Cuts?
The lawmaker, who is the head money manager Rep. Dave Joyce (R-Ohio) says that the bill will prevent the IRS from bullying hard working Americans. To some extent, it can be compared to ensuring that the money police do not give you too much trouble.
The Pushback
Some people are not satisfied with this. Democrats are pretty mad. Senate Finance Committee chair Ron Wyden (D-Ore) warned that the Republicans only want to eliminate our right to file taxes for free before the program expands across the country. The plan also contains a lot of weird and pointless rules, says representative Rosa Delauro (D-Conn).
A Bit of History
Let’s rewind a bit. Last year and as part of the Democrats’ 2022 Inflation Reduction Act (IRA), the IRS received additional funding of up to $80 billion. However, over the years, the Republicans have been systematically drawing this money. They promised to reduce it by approximately $20 billion for a few years to avert the United States defaulting on the debts.
Where’s the Money Going?
As of the end of last year, the IRS had only deployed approximately, less than five. This investment should ideally amount to between 5 – 6% of its IRA funding. It is like taking only a single money out of a large bag that is full of money. They have yet to spend one percent of the amount allocated for catching money thieves.
The Free Filing Program: With Assessment On The Horizon
Last year when Republicans won the House they voted to end the IRS Free File program that was also online. It’s like choosing to pull the plug on the free money-counting tool. Unfortunately this was stopped in its tracks because the Democrats still control the senate.
What’s Next?
Therefore, what does all this entail for us? In its current form, the act will reduce the money available to the IRS to fund its operations and enforce tax laws. We might never be able to file our taxes for free online ever again. And ‘It’s like counting less money and NO free tool to assist us in the process.’
Final Thoughts
Finally, no matter which side of the fence one or the other of these cuts, everyone has to be informed. Taxes are not the most riveting of subjects, but they are applicable to all our lives in one way or another.
