President Biden slams ‘reckless bill’ from Republicans to reverse funding for the IRS and its 87,000 new hires — here's how it could impact you

Washington’s lawmakers have come back from their holiday break swinging.

After a days-long speaker standoff, Republicans in the House have moved on to their next priority: clawing back funds from the IRS.

President Joe Biden had included increased funding for the IRS in the Inflation Reduction Act to help the agency catch sneaky tax evaders — especially those high-earners who love to find loopholes. Advocates believe the increased funding could raise as much as $1 trillion by forcing tax cheats to pay their dues, especially after years of budget cuts have gutted the system.

But on Jan. 9, Republicans introduced and passed a bill to rescind that $80 billion in funding.

While it’s likely to be struck down by the Democrat-controlled Senate, and Biden’s office has already voiced his intentions to veto "this reckless bill" if it makes it to his desk, it’s still a strong statement from Republican lawmakers.

Meanwhile, at the center of this political football is an overworked and understaffed tax agency. And whoever wins the power struggle in Washington, experts say taxpayers could be the ones left holding the bag.

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The IRS desperately needs the support

The $80 billion in funding spread over the next 10 years would help the IRS modernize its infrastructure, increase enforcement and replace its aging workforce (50,000 of the IRS’s 80,000 workers are expected to leave in the next five years).

A Treasury Department report from May 2021 estimates the extra money would allow the agency to hire around 87,000 new employees — which could include revenue agents and customer service and IT staff — by 2031.