A Congressional Budget Office report found that the Internal Revenue Service will collect billions of dollars from auditing low- and middle-income Americans under the White House-backed "Inflation Reduction Act," contradicting Biden administration claims, according to Republicans on the House Ways and Means Committee.
Fox News confirmed the report, finding the CBO informed congressional Republicans that, under the act, audits of taxpayers making under $400,000 will account for about $20 billion in additional revenue.
The news comes after high-ranking Biden administration officials, including Treasury Secretary Janet Yellen and Press Secretary Karine Jean-Pierre, assured Americans that the IRS would not increase audits of people earning under $400,000. The Inflation Reduction Act, which on Sunday passed the Senate, allows the IRS to hire up to 87,000 new agents, making it larger than the Pentagon, the State Department, the FBI, and the Border Control combined. Democrats shut down an amendment that would have prevented agents from increasing audits on middle- and low-income Americans.
The bill is expected to pass the House on Friday.
News of the CBO report also comes as the University of Pennsylvania's Wharton School of Business found the bill will have an "impact on inflation [that] is statistically indistinguishable from zero" even as it raises taxes on Americans and decreases GDP for the next decade.
Republican lawmakers have pushed back against the bill, with Sen. Tom Cotton (Ark.) saying that "only the Democrats would call a bill that doubles the size of the IRS, raises taxes, and spends billions on a green energy slush fund the 'Inflation Reduction Act.'"
Published under: Biden Administration , CBO , IRS