The Republican-controlled House recently passed a bill to provide around $14 billion in emergency aid to Israel while cutting the same amount from the Internal Revenue Service (IRS). However, Senate leaders have indicated that they will not consider the bill, and President Biden has threatened to veto it.
President Biden had originally requested $106 billion in foreign aid for Ukraine, Israel, and countering Chinese influence in the Pacific. House Speaker Mike Johnson decided to separate the funding for Israel and cut the budget to prevent the federal deficit from increasing.
However, analysis from the Congressional Budget Office (CBO) suggests that the cuts to the IRS would actually cost taxpayers more money. The reduced funding for the IRS would limit their ability to audit high-income earners and tax evaders, resulting in a loss of tax revenue of $26.8 billion, according to the CBO. IRS Commissioner Daniel Werfel estimates the loss to be closer to $90 billion.
The bill passed in the House by a vote of 226-196, with 12 Democrats joining the majority of Republicans in favor of it. However, House Democrats argue against the characterization of the bill and defend the IRS. They highlight that the IRS received increased funding in the Inflation Reduction Act earlier this year.
Republicans have been targeting the IRS funding since gaining control of the House, attempting to rescind the money in previous bills. They see these cuts as a way to offset the cost of foreign aid, although Democrats dismiss this as a partisan tactic.
Senate Majority Leader Charles E. Schumer has stated that the Senate will not consider this proposal, calling it deeply flawed. Instead, Senators Patty Murray and Susan Collins are working on a separate aid package that includes funding for Israel, Ukraine, and defense in the Asia-Pacific region.
President Biden has already expressed his intent to veto the House bill if it reaches his desk. White House officials argue that all the funding requests, including Israel’s, are important for U.S. interests.
The House bill has turned what could have been a straightforward win for the new House Speaker into a partisan battle. It also suggests the uncompromising approach Speaker Johnson may take in future negotiations. Some Republican lawmakers believe that the speaker’s tactics could lead to conflicts with both Democratic and Republican Senate leaders.
In summary, the House passed a bill to provide emergency aid to Israel while cutting funding from the IRS. However, Senate leaders are unlikely to consider the bill, and President Biden has threatened to veto it. The bill has sparked a partisan divide and raised concerns over its potential impact on the federal deficit.





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