House GOP’s $14B Israel aid bill offset with cuts to IRS cash in Biden’s Inflation Reduction Act

House Republicans have proposed a $14 billion package of aid to Israel that would be offset by cuts to the Internal Revenue Service (IRS) cash in the Biden administration’s Inflation Reduction Act (IRA). The cuts would reduce resources available for IRS compliance enforcement and taxpayer service, which would likely include contact with call centers, tax return processing, and other taxpayer assistance.

The proposed package would increase annual military aid to Israel for five years from $3.3 billion to $4.5 billion, providing a total aid boost of $14 billion over the next decade. With inflation, the total value of the package would likely exceed $20 billion.

The cuts to the IRS cash would come from money set aside in the Inflation Reduction Act to protect taxpayers from the consequences of Biden’s $1.9 trillion stimulus package. The IRA had originally allocated $320 billion to the IRS to help maintain service to taxpayers during a surge in filers.

House Republicans argue that the package of aid to Israel is necessary to deter adversaries from attacking, while Democrats point out that the move would come at the expense of taxpayers who are already under financial stress due to the pandemic and economic recession. Democrats also argue that the cuts would increase the risk of tax fraud and create more economic hardship for those already suffering from job losses and financial insecurity.