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To Help Taxpayers, Congress Should Fund the IRS and Save Direct File
The arguments against an improved IRS are motivated by private corporations worried about their profit margins and by anti-government activists seeking to undermine the public’s trust in the agency.
Dec 17, 2024
As Congress negotiates a bill for federal funding during the lame-duck session, lawmakers would be wise to remember that stripping funds from the Internal Revenue Service costs more than it saves. On the table in the appropriations bill is a $20 billion recission of funds to the nation’s tax administration. While this may look like a spending cut, it will increase deficits by $46 billion due to a drop in the agency’s capacity to enforce taxes on wealthy individuals owed under existing federal law.
At the same time, congressional Republicans are calling on the incoming Trump administration to end the popular program that allows taxpayers to file their returns for free directly through the IRS. This will ultimately lead to more costs for taxpayers as they pay private services such as Intuit or H&R Block to carry out paperwork that they are required by law to file each year.
Regular taxpayers benefit from a competent and well-funded IRS. Most people do their best to pay their taxes accurately and on time, and slashes to funding that leave the agency understaffed and underequipped only create headaches for compliant taxpayers. Until recently, the IRS was not given the funding and capacity to pursue the high-income taxpayers who have the most complex returns but who also account for a hugely disproportionate share of the tax avoidance, which unfairly shifted the agency’s scrutiny to everyone else.
The arguments against an improved IRS are motivated by private corporations worried about their profit margins and by anti-government activists seeking to undermine the public’s trust in the agency.
Upcoming Appropriations Bill Will Cut Billions from the Agency if Congress Does Not Act
Congress must appropriate funding to each federal agency every year, even when that funding has already been authorized through prior legislation. When Congress cannot come to an agreement on funding levels, they frequently pass “continuing resolutions,” which generally keep funding at its current level to prevent a government shutdown.
To help rebuild the agency after a decade of cuts in its annual appropriations, Congress provided an additional $80 billion in the Inflation Reduction Act to supplement its annual appropriations for 10 years. Most of this money is for tax enforcement targeting profitable corporations and the wealthy. That was unpopular among congressional Republicans, who sought to eliminate the additional funding during 2023’s debt ceiling negotiations.
Filing tax returns is required by federal law, and taxpayers should not need to pay money to a private company to hand over their private information to complete the service for them.
U.S. President Joe Biden signed the IRA into law but shortly after compromised with then-Speaker Kevin McCarthy (R-Calif.) and agreed to rescind $20 billion in funds over the upcoming two years as part of a deal to prevent the Republican-controlled House from driving the United States to default on its debts. The provision to cut those funds was included in the next year’s spending bill, negotiated between Republican and Democratic lawmakers. But rather than spreading the cuts over two years, all $20 billion was included in the first year—fiscal year 2024.
Now, Congress is likely to pass a continuing resolution that would extend funding levels from 2024. Without an agreement between lawmakers, this would include an additional $20 billion funding cut to the IRS that was not included in the initial Biden and McCarthy agreement.
This is bad for the federal deficit and bad for average taxpayers.
Congressional Republicans Also Want to Make it More Expensive to File Tax Returns
This year, for the first time ever, many taxpayers were able to file their taxes for free directly through the IRS as part of the Direct File pilot program. In past years, taxpayers were forced to either file by hand themselves or to use paid tax preparers like TurboTax, H&R Block, or Jackson Hewitt.
Taxpayers who used the Direct File program (which was only available in 12 states during its first year) were pleased with the results. The pilot program exceeded its goal for the number of users, and 90% of users rated their experience with the program as excellent or above average.
State governments were excited about the opportunity as well. Thirteen additional states are cooperating with the IRS to expand Direct File to include their state income taxes.
It makes sense. Filing tax returns is required by federal law, and taxpayers should not need to pay money to a private company to hand over their private information to complete the service for them.
But that is exactly what many congressional Republicans are now asking the incoming Trump administration to require of honest taxpayers. Twenty-nine Republican lawmakers signed a letter to the incoming administration asking them to end the popular program on “day one.”
Previously, the IRS attempted to persuade private companies to offer free filing services for taxpayers with relatively simple returns through a program called the Free File Alliance, and the companies participated for some time. But this arrangement did not always go as planned.
Some companies hid the free services from search engine results, and in TurboTax’s case, their parent company Intuit was eventually sued for deceptively leading taxpayers into paid services rather than the free services. Intuit eventually settled for $141 million.
Decade of Austerity Diminished the IRS’ Ability to Serve its Mission
Between 2010 and 2021, the agency’s budget was cut by a fifth and the number of revenue agents dropped by 35%. Meanwhile, the amount of tax returns filed grew by 13%, and the amount of tax returns filed by individuals making more than $500,000 grew by 70% from 2011 to 2019. As a result, the audit rate on these wealthy individuals dropped by more than 76%.
Although the IRS budget cuts were part of a larger campaign of government austerity following the Great Recession, the cuts put the federal budget in a worse position. The gap between the taxes that people legally owed and what they actually paid grew as high as $600 billion annually by 2021, more than half of that due to unpaid taxes from the top 5% of income earners.
Every hour spent auditing the returns of the most well-off families found $13,000 in unpaid taxes.
It wasn’t just the country’s fiscal situation that suffered from the assault on the IRS. Regular taxpayers trying to file accurate and timely tax returns found themselves dealing with an agency unable to meet the needs of the public. In 2022, The Washington Post reported on outdated and understaffed IRS processing facilities. IRS employees were in many cases using 70s-era technology and business processes. The Austin, Texas facility was so strained that its cafeteria became an impromptu document storage room.
The result was that the agency was failing. It was simply unable to answer calls, respond to letters, and issue swift tax refunds.
Recent Improvements to the IRS are Delivering Immediate Results for Taxpayers
The Inflation Reduction Act passed in 2022 reversed the decades of funding cuts to the IRS. The bill allocated $80 billion (now reduced to $60 billion and potentially even further) in funding to the agency to return its workforce to adequate levels, modernize its business systems and technology, and increase tax enforcement on big businesses and people making more than $400,000 a year.
The results were immediate. In prior years, the IRS had satisfactorily answered just 15% of phone calls. In 2023—the first tax year with the new funding—they answered 85%. That’s still too low by most standards, but a remarkable improvement. The agency also opened or re-opened 54 in-person centers to assist taxpayers across the country.
Positive Results for the Federal Budget, Too
The improvements to the IRS have delivered progress toward closing the tax gap as well. In 2023, the agency released a comprehensive strategic operating plan. In addition to improving taxpayer services, the document laid out the agency’s strategy for increasing audit rates on high-income individuals and complex business structures. While it may only take one auditor a few hours to review the tax return of a family claiming the Child Tax Credit, dissecting the tax return of a large S-corporation could be a years-long project for an entire team of auditors. So, the first step was to hire highly-skilled staffers and provide them with the best training and technology available.
This year, the IRS announced that it had collected $1.3 billion in unpaid taxes from millionaire households. In many cases, these were individuals simply not even bothering to file their tax returns. The agency had also begun leveraging modern technology like artificial intelligence to identify the most suspicious returns from large, complex partnerships.
If these funding cuts are passed, there will be thousands of fewer audits of wealthy individuals and large corporations. The latest estimates from the Congressional Budget Office show that an additional $20 billion recission in IRS funds will result in $66 billion in lost revenue, creating a $46 billion rise in deficits. That estimate tracks with a recent Government Accountability Office report that found every hour spent auditing the returns of the most well-off families found $13,000 in unpaid taxes. Cutting this funding is costly, not just for the honest taxpayers who will spend more hours waiting on the phone, but with direct increases in the federal deficit.
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Trump: Rhinoceros in Chief
An example of absurdist drama that prophesied Trumpist transformation is Eugène Ionesco’s Rhinoceros—the classic play in which an entire town devolves into rhinoceroses that silence any hope of coherent conversation.
Jan 19, 2024
In 1968, the Youth International Party nominated a pig named Pigasus for president; in 2024, the Republican Party will likely nominate a Traitor named Trump for president, a dumber and more corrupt candidate than Pigasus. The Youth International Party—the anarchic, counter-culture Yippies— nominated the pig as an absurd joke. While it’s absurd to nominate an indicted felon who tried to overturn the 2020 election, the GOP is not joking.
The Yippies’ pig had no chance of becoming president: according to the Constitution Pigasus wasn’t qualified, being younger than 35 years old. Trump as an insurrectionist is—like the pig—unqualified to be president, according to the Constitution. Yet, unlike Pigasus, he has a good chance to become president: The Supreme Court will likely discount the Constitution, he leads Biden in some polls, and, if he loses, he will try to steal the election again, threatening “bedlam” if that happens.
To rational people, it is mindbogglingly surreal that an incompetent, ignorant megalomaniac and sexual abuser like Trump, whose grating voice alone rattles teeth, would be deemed fit for the presidency, let alone close to winning power. Yet he is. Despite his enabling of the pandemic, his 2020 defeat, his instigation of the January 6 attack on the Capital, the 91 charges across four criminal cases, and his never-ending hurricane of lies, millions of reality-challenged Americans worship and support him.
Exposing its total MAGA-tization, the Republican Party has crawled with Trump into a moral abyss that turns out to be a bottomless pit of unreality. The fake GOP primary delivers phony, cowardly candidates Nikki Haley and Ron DeSantis, who are terrified of criticizing him and have promised to support him even if he were a convicted felon. They continue their sham candidacies, hoping that the laws of gravity will reverse on Trump and he will be sucked up into the vacuum of outer space. Failing that, it is perfectly fine with them that the defeated president attempted a coup and, though stopped, he can still return to the presidency.
The deranged Trump swamped his “opposition” in the Iowa caucus by 30 points. Watching cable news afterwards, it felt like I was living in Russia and Putin was running against two puppet candidates. The pundits seriously discussed the micro-details of the race and how each of the candidates fared in Nowheresville, Iowa, and no one screamed, “This is insanity—this is the cult of a madman!”
The craven cult that inflates Trump’s already-enormous self-esteem has given him the power to bend the arc of reality.
The nightmarish possibility of electing the shameless septuagenarian— a self-described dictator—is helped by his politically weak octogenarian opponent Joe Biden who frames the election as a choice between him and doomsday, but provides doomsday-style weapons and unconditional support for Israel’s Gaza genocide. In addition, Biden risks a “Red Sea War” by bombing Yemen, one of the poorest countries in the world.
Angry with Biden, pro-Palestine anti-war progressives might turn away from him in disgust—not voting or voting for third party candidates, undoubtedly funded by Republican donors. Other voters don’t like him because he is too old. In any case, Biden-hating voters might help elect the Muslim-hating, also elderly Trump, who is even more supportive of Israeli Prime Minister Benjamin Netanyahu than Biden. In his first torturous term, Trump moved the American embassy to Jerusalem and left Palestinians out of the Abraham Accords, which many viewed as a betrayal of Palestine.
In his first term, Trump’s brutality and corruption were slightly mitigated by his ignorance and laziness. In a second, Trump—older and lazier—would better understand the system’s vulnerabilities and loopholes. On inauguration day 2025, Trump will be an indicted or convicted outlaw. He will commit the first crime of his second term at noon: His oath to defend the United States Constitution will be a perjury.
In a second term, he would install an army of political loyalists whose fealty to his most unhinged demands will take precedence over their commitment to the Constitution or legal governance. They will help him drive a much more focused agenda of vengeance against his adversaries and impunity for himself. For his own survival, he must destroy the rule of law by stopping all state and federal, civil and criminal cases against him. If a president can order the justice department to stop a case against him—as Trump would surely do—then obstruction of justice becomes a normal privilege of the presidency.
A former insurrectionist re-elected to the Presidency, he would use the Insurrection Act to order the military to crush protests—which he hoped to do during the summer of 2020—and turn the power of the federal government against his perceived enemies. Paraphrasing Hitler, he said, “We will root out the communists, Marxists, fascists, and the radical-left thugs that live like vermin within the confines of our country.” It has always been Trump’s supreme political wish to wield military violence as personal weapons of power—a wish that many in his party now seem determined to help him achieve.
As xenophobe-in-chief, he hopes to institute a program of mass detainment and deportation of undocumented immigrants, who he says are “poisoning the blood” of the country, employing the rhetoric of European totalitarians. His aides have already drawn up plans for new detention centers at the U.S.-Mexico border, where anyone suspected of illegal entry would be held until officials have settled the person’s immigration status.
If Trump is returned to office, he will undoubtedly make January 6 a national holiday—the Day of the Patriotic Martyrs.
American democracy will disintegrate piece by piece as a second Trump term erects a postmodern fascist state modeled on Victor Orbán’s Hungary—destroying the legitimacy of elections, trampling constitutional rights, instituting a nation-wide abortion ban, cutting off immigration, suppressing derogatory media, promoting Christian nationalism, and undermining the rule of law.
Even beyond this horror, the craven cult that inflates Trump’s already-enormous self-esteem has given him the power to bend the arc of reality. His hallucinating supporters believe in an elaborate MAGA phantasmagoria that Trump has concocted: that the previous election was stolen, that Biden is an illegitimate president, that Biden has weaponized the legal system to prosecute his strongest opponent Trump, and that the January 6 riot was not an insurrection by Trump supporters but an instigation by the FBI and antifa.
In a brief moment after the January 6 Capitol attack, many in the GOP thought the Trump monster had been banished, a pariah in the Party. Republican leaders blamed him for the insurrection. Party fund-raisers assured donors they were done with him. Trump’s own loyalists turned against him. Former Attorney General Barr said Trump’s conduct was a “betrayal of his office and supporters.”
The Murdoch-owned lapdog Wall Street Journalargued that Trump was done: “This week finished him as a serious political figure. He has betrayed his loyal supporters by lying to them about the election and the ability of Congress and Mr. Pence to overturn it. He has refused to accept the basic bargain of democracy, which is to accept the result, win or lose.” Trump also got blamed when the 2022 midterms went seriously awry as Trump-endorsed election deniers lost winnable races and the much-hyped “red tsunami” turned into a dribble. In her book, purged Republican Liz Cheney reported that afterwards Trump was depressed and refused to eat.
After condemning Trump for January 6 and even suggesting that he resign, now-deposed House Speaker Kevin McCarthy traveled to Mar-a-Lago and, in an historically spineless act of recantation, embraced and absolved the starving former President. Cheney and many others have identified this as a pivotal moment in reviving the former president’s political viability and appetite.
Still, previous to this submission, the Republican Party threw away its best chance to bury him forever when 43 senators voted to acquit him in his impeachment after the Capitol riot. They could have relegated him to Palm Beach and saved America from hearing the despicable rants of this malfunctioning moron and putting the police and the nuclear button under his thumb.
Trump resumed eating, lying, and constructing a new absurd reality that has proven more politically salient with the GOP and its voters than many of us thought possible on January 7, 2021, even after seeing it happen over and over for the previous six exhausting, gut-wrenching years.
Pulling off a kind of double coup, this psychopathic fabricator added to the original Big Lie about the “rigged election.” He called January 6 “a beautiful day,” and he designated the nearly 1,300 defendants arrested in connection with the Capitol attack ”martyrs” and “hostages.” He has promised to pardon insurrectionists and threatened to lock up the police who tried to defend the Capitol that day. If Trump is returned to office, he will undoubtedly make January 6 a national holiday—the Day of the Patriotic Martyrs.
The GOP and the right-wing media echo system has been so effective in pumping out Trump’s upside-down-world propaganda that polling recently found that, in the intervening three years, the number of Republicans who believe Trump’s lies about a “rigged election” has, in fact, gone up. Today, only 31% of Republicans believe that Biden is the “legitimate” president, down from 39% in late 2021. The poll also showed that Republicans thought the insurrectionist mob were mostly peaceful.
For millions of people, Trump has managed to transmute historical events that everyone saw with their own eyes into theater of the absurd, an anti-realistic dramatic genre characterized by dark humor, incoherent language, strange symbolism, and themes that relate to human irrationality.
An example of absurdist drama that prophesied Trumpist transformation is Eugène Ionesco’s Rhinoceros—the classic play in which an entire town devolves into hard-skinned, monstrous rhinoceroses that issue ear-shattering bellows that silence any hope of coherent conversation. Rhinoceros thundered onto the stage, in 1960, with a chilling yet farcically funny allegory of how fascism can mutate ordinary people into angry, violent, mindless beasts whose articulateness dissolves into a cacophony of guttural honks.
Writing in the wake of Hitler and Stalin, Ionesco painted a picture of a society succumbing to the contagion of “rhinoceritis,” a disease that erodes individuality and replaces it with groupthink and casual brutality as well as a hatred of non-rhinoceroses. The transformative infection suggests the dehumanizing force of tyrannical ideologies.
Becoming a huge, horned rhinoceros is gradually normalized: A formerly concerned character Jean dismisses his friend’s terror at the multiplication of grotesque rhino mutations and their deleterious effects on human freedom. Jean debases himself and enables rhinoceritis when he says that despite their savage deformity, they’re “harmless, docile herbivores” and “seem so sure of themselves.” This mindless acceptance and rationalization foreshadows the insidious nature of the disease, disguising its destructive potential.
Ionesco’s play exposes the lure of surrendering to a mass authoritarian movement and abandoning the burden of independent thought. Among Trump’s abettors are numerous verifiably insane congresspeople who have been infected by rhinoceritis for a long time such as Marjorie Taylor Green, Lauren Boebert, and Matt Gaetz. But it’s the transformed normies that are most pathetic.
Current House Majority Whip Tom Emmer angered Trump when he voted to certify Biden’s election, unlike 147 colleagues who voted to overturn the election. When Emmer ran for his dream-job Speaker of the House, Trump sank his candidacy, warning that he would be a “tragic mistake” and calling him a “Globalist RINO” (not a rhinoceros). Two months later, Emmer—like nearly 100 members of the House, said, “I am proud to endorse Donald J. Trump for President.” Expressing his gratitude to Emmer for his miserable self-abasement, Trump smirked, “They always bend the knee.”
One of the more pitiful examples of “Trump Debasement Syndrome” is Sen. Josh Hawley, the guy who egged on the January 6 rhinoceros-thugs with a fist-pump that lamely showed solidarity with them and then was recorded in security footage fleeing for his life to avoid those same stampeding thugs. Hawley has decided to “forget” his traumatic escape from the mob, though he had not endorsed King Rhinoceros as the Iowa caucus approached. Exhibiting concern for Hawley’s electoral health, Trump warned him to “be very careful” in his Senate re-election campaign. Shortly thereafter, Hawley joined the Republican Rhino herd and publicly endorsed Trump saying, “I’m with him.”
Rhinoceros explored the erosion of moral values, the seductive nature of power as people become mere instruments of brute strength and aggression. As authority figures collapse and undergo metamorphosis, other people find it easier to justify why becoming a rhinoceros is desirable. As one character declares, “It‘s the strength that counts, don’t you want to be strong?”
Once a rising conservative normie in the party—an acolyte of former Republican VP candidate Paul Ryan, Rep. Elise Stefanik has transmogrified into an automated MAGA rhinoceros. She trumpeted Trump’s reference to the January 6 criminals as “hostages,” and embraced the claim that the 2020 election was an “unconstitutional circumventing of the Constitution.” Stefanik refused to commit to certifying the results of the 2024 election, saying “We will see if this is a legal and valid election.” After calling the media biased against Trump, she said the “border crisis is poisoning Americans.” Desperately thirsty for Trump’s VP spot, Stefanik has become a eager demagogue.
What began, in Rhinoceros, as isolated incidents becomes a rhinoceros contagion as the town’s residents witness an astonishing metamorphosis as more and more people sprout horns, grow enormously huge with hard green skin, and succumb to the allure of the rampaging Rhino fascists. There are no elections in Rhinoceros Town so the entire society is transformed, except for one individual Berenger who shouts, “I’ll take on the whole of them! I’ll put up a fight against the lot of them! I’m the last man left, and I’m staying that way until the end. I’m not capitulating.”
The entire Republican Party—elected officials and voters—have capitulated. They’ve chosen the sickness, nihilism, and absurdity. Fortunately, we still have democracy. Stopping the Trump contagion will not suddenly eradicate the disease and make America perfectly healthy, but it is vital to embrace reality, reject the absurd, prevent further suffering, and preserve the possibility of progress.
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House GOP Revolt Again Shows 'Republicans Simply Can't Govern'
While the chamber's GOP leader brushed off concerns, others predict that "Johnson's days as speaker could be numbered."
Jan 10, 2024
Just over a week away from a partial government shutdown, 13 far-right Republicans in the U.S. House of Representatives on Wednesday protested Speaker Mike Johnson's bipartisan spending deal by joining Democrats to tank an unrelated procedural vote.
Congressional Democrats, Capitol Hill journalists, and other observers highlighted the development as further proof of "Republicans in disarray" as the January 19 deadline looms. Some government agencies are funded until then; others have until February 2.
"The House is essentially frozen again. The GOP leadership cannot bring up any bills that are not already noticed on the suspension calendar. And conservatives just killed leadership's ability to bring up any bills under a rule," Punchbowl News' Jake Sherman explained, calling the House "ungovernable" and the vote "an unmitigated disaster" for Republicans.
"House Republicans are intent on having 2024 in Congress look a lot like it did in 2023: full of dysfunction and chaos."
Decrying "another week of House GOP chaos and confusion," U.S. Rep. Jim McGovern (D-Mass.) similarly declared that "the incompetence of Republican leadership is a total unmitigated disaster for this country."
Other House Democrats also piled on and stressed that a government shutdown is just nine days away.
"So far, it seems House Republicans are intent on having 2024 in Congress look a lot like it did in 2023: full of dysfunction and chaos," asserted Rep. Raja Krishnamoorthi (D-Ill.).
"Deja vu! House Republicans have lost control of the House floor, again. House Republicans have repeatedly shown that they cannot govern," said Rep. Ted Lieu (D-Calif.).
Congressional Progressive Caucus Chair Pramila Jayapal (D-Wash.) agreed, saying that "Republicans simply can't govern," and separately pointing out that "they're leading the least productive Congress since the Great Depression—it's an embarrassment."
Last October, far-right House Republicans ousted then-Speaker Kevin McCarthy (R-Calif.)—who ultimately resigned from Congress at the end of last year, reducing his party's majority—and eventually replaced him with Johnson (R-La.), after Reps. Tom Emmer (D-Minn.), Steve Scalise (R-La.), and Jim Jordan (R-Ohio) all abandoned their speakership bids.
While Johnson's election was seen as a sign of the far-right's hold on the Republican Party, he and Senate Majority Leader Chuck Schumer (D-N.Y.) still reached a spending agreement on Sunday that largely aligns with the deal McCarthy and President Joe Biden negotiated last year while passing the Fiscal Responsibility Act to prevent a U.S. default.
Johnson and Schumer agreed to $886 billion for defense and nearly $773 billion for nonmilitary spending for fiscal year 2024. The Senate leader and House Minority Leader Hakeem Jeffries (D-N.Y.) also said Sunday that they made clear to Johnson that "Democrats will not support including poison pill policy changes in any of the 12 appropriations bills."
NBC Newsnoted that before the vote on Wednesday, Johnson "did not rule out another short-term funding bill to avert a shutdown later this month, a shift from December when he vowed there would be no more stopgap bills in 2024."
Explaining the far-right revolt, House Freedom Caucus Chair Bob Good (R-Va.) reportedly told journalists, "We're making a statement that the deal, as has been announced—that doesn't secure the border and doesn't cut out spending and is going to be passed apparently under suspension of the rules with predominantly Democrat votes—is unacceptable."
According toPolitico:
As the vote failed, Johnson left the floor and huddled in his office with Republicans on the Rules Committee, including Rep. Chip Roy (R-Texas), who has flirted with trying to oust the speaker after the topline spending agreement.
"We'll see," Roy said as he was leaving Johnson's office about the potential that additional bills go down. "Right now, the point here is that we're not remotely satisfied."
Appearing on Fox News after the revolt on Wednesday, Johnson stressed that he, too, is a "conservative hardliner" and acknowledged the frustrations of Roy and others, while also dismissing concerns that he may be ousted like McCarthy was just a few months ago.
Johnson said that "I don't think I'm in any jeopardy of being 'vacated,'" but others were quick to frame the vote as a signal that a motion to vacate may be coming soon.
"The GOP can't manage to pass rules (largely unheard of before this Congress), they're about to chase off another speaker, and they're showing revenge porn in committee again... The 118th Congress," said Rep. Summer Lee (D-Pa.).
Democratic strategist Sawyer Hackett declared: "Here we go again. A dozen or so Republicans are blocking passage of a rules vote to protest Speaker Johnson agreeing to a spending deal similar to McCarthy. Johnson's days as speaker could be numbered."
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