This marks the first bill passed by the GOP-controlled House this Congress.

The bill, which is unlikely to see action in the Democratic-controlled Senate, passed in a party-line 221-210 vote on Monday evening.

A boost of about $80 billion in IRS funding over a decade generally aimed at upping high-income enforcement was included in last year’s Inflation Reduction Act, Democrats’ sweeping tax, health and climate bill.

The Republican bill, formally titled the “Family and Small Business Taxpayer Protection Act,” directs any “unobligated balances of amounts appropriated or otherwise made available” to the IRS from the Inflation Reduction Act to be rescinded.

The Congressional Budget Office (CBO) estimated Monday that the legislation would eliminate about $71 billion of the total $80 billion that was allocated for the IRS but would reduce tax revenue by about $186 billion, translating to a $114 billion increase in deficits over the next decade.

Republicans have repeatedly falsely claimed the 87,000 new IRS employees, who would be added over the course of a decade, would be “agents.”

The 87,000 figure comes from a May 2021 Treasury Department compliance report estimating new hires over a decade with the $80 billion funding boost. But only a small portion of the department’s current employees are agents, and the department has said the figure accounts for other workers such as customer service representatives and computer scientists as well as replacements for the 52,000 employees expected to retire or resign within the next six years.

IRS Commissioner Charles Rettig said in an August letter to members of the Senate that the funds from the legislation would be used to up examination of large corporations and high-net-worth individuals and were not designed to raise enforcement for households making less than $400,000.

Treasury Secretary Janet Yellen has also said that the agency would not increase audit rates for those taxpayers making less than $400,000.

Republicans, however, argued that the directives did not prohibit increased enforcement activities directed at middle- and low-income taxpayers, and pointed to a CBO analysis that said the funding boost would mean audit rates “rise for all taxpayers.” They also criticized the legislation for not allocating a larger portion to taxpayer services.

Representative Nick Langworthy voted for the bill, saying in a statement, “The problems facing the people of Western New York and the Southern Tier require a sense of urgency and that’s what they deserve from their representatives. I made a promise to protect taxpayers from an overzealous, politicized IRS and I delivered. The American people entrusted us with the Majority and it’s time we produce results. We are just getting started.”

The bill stand little chance in the Senate, and the White House said in a statement on Monday that President Biden would veto it if it came to his desk.

Rep. Tom Reed (R-Corning)

WASHINGTON – House Ways and Means Chairman Richard Neal (D-Massachusetts) is not backing down on his request for six years of the President Donald Trump’s personal and business tax returns.

In a letter sent to the Internal Revenue Service commissioner this past weekend, Neal wrote that he believes his committee is well within its rights to see the President’s tax returns and that he expects a decision from the IRS within the next 10 days.

The letter leans heavily into the committee’s legal rational for the returns.

“I am aware that concerns have been raised regarding my request, and the authority of the committee. Those concerns lack merit. Moreover, judicial precedent commands that none of the concerns raised can legitimately be used to deny the committee’s request,” Neal wrote.

The letter comes just days after the Treasury Department told Neal that it would not meet a one-week deadline to turn over the President’s tax information and that it would instead consult with the Justice Department before responding further.

Meanwhile Chautauqua County’s representative in Congress ramped up his criticism of his Democratic colleagues on the House Ways and Means Committee.

Rep. Tom Reed (R-Corning, NY 23) – who serves on the committee – said on Wednesday that House Democrats were weaponizing the tax code and weakening privacy rights as they try to subpoena Trump’s tax returns.

“Many Democrats began thinking of impeachment the day after Donald Trump won the 2016 election, and this is just the next step in process,” Reed said. “If the Democrats on the Ways and Means Committee are successful, this will set a dangerous precedent. What will stop future Members of Congress from targeting future political foes, or even their neighbor down the street, and requesting their tax returns?”

Reed highlighted that if Democrats are serious about increasing transparency surrounding the financial interests of people running for office, Republicans and Democrats should work together to increase the transparency of financial disclosure forms candidates for office file.

“Transparency in our government is enormously important. So is privacy and freedom from the fear any American can be targeted by any political party for purely partisan reasons,” Reed concluded.

Taxpayers who itemize will only be eligible for a federal deduction that’s a small fraction of their charitable donations for property tax payments, according to proposed regulations issued by the Treasury Department on Thursday.

The charitable contribution strategies in high-tax states were created so taxpayers would be able to write off the full donation amount from their federal taxes.

NY Gov. Andrew Cuomo said the IRS was imposing politically motivated regulations to further the agenda of the Trump administration and block reforms from New York and other Democratic leaning states.

Cuomo said he and other states will consider litigation in an effort to fight the new regulations.

Below is Cuomo’s full statement on the issue:

“The federal government passed a partisan tax bill that took aim at New York, effectively raising our taxes and making us less competitive. The elimination of full state and local tax deductibility will cost New York families $14.3 billion each year, and we are already seeing evidence of its devastating toll on homeowners – home sales in Westchester for example fell by 18 percent in the second quarter, the most since 2011.

“Whether it be extreme weather or political attacks from the Trump administration — my number one job is to protect the people of New York. That’s why we were the first state to take action to protect our taxpayers against this federal tax assault and ensure New York families weren’t being used as a piggy bank to pay for tax cuts for big corporations.

“In a confounding and inexcusable act of betrayal, some New York Republicans voted for this anti-New York legislation, and every Republican in the New York delegation failed to stop their leadership from passing it. Representative John Faso went a step further by asking the IRS to effectively sabotage New York’s efforts to protect our taxpayers.

“Now the IRS is hastily proposing politically motivated regulations to further the agenda of the Trump administration and block reforms that deliver relief to New York taxpayers. In New York, we will not stand for this abuse of government power. We are confident that the recently enacted opportunities for charitable contributions to New York State and local governments are consistent with federal law and follow well-established precedent. And make no mistake: we will use every tool at our disposal, including litigation, to fight back.”