If Democrats have their way, one of the most detested federal agencies—the
Internal Revenue Service—will employ more bureaucrats than the Pentagon,
State Department, FBI, and Border Patrol combined.
Under the Inflation Reduction Act negotiated by Sen. Joe Manchin (D.,
W.Va.), the agency would receive $80 billion in funding to hire as many as
87,000 additional employees. The increase would more than double the size
of the IRS workforce, which currently has 78,661 full-time staffers,
according to federal data.
The additional IRS funding is integral to the Democrats' reconciliation
package. A Congressional Budget Office analysis found the hiring of new
IRS agents would result in more than $200 billion in additional revenue
for the federal government over the next decade. More than half of that
funding is specifically earmarked for "enforcement," meaning tax audits
and other responsibilities such as "digital asset monitoring."
That would make the IRS one of the largest federal agencies. The Pentagon
houses roughly 27,000 employees, according to the Defense Department,
while a human resources fact sheet says the State Department employs just
over 77,243 staff. The FBI employs approximately 35,000 people, according
to the agency's website, and Customs and Border Protection says it employs
19,536 Border Patrol agents.
The money allocated to the IRS would increase the agency's budget by more
than 600 percent. In 2021, the IRS received $12.6 billion.
Although Democrats say the hiring of additional IRS agents will help root
out tax cheats and other criminals, federal tax revenues have steadily
risen over the past several decades. Federal tax receipts are projected to
hit $5.7 trillion in 2027, up from just over $4 trillion last year without
additional IRS agents.
But the roughly $450 billion in new spending proposed by Democrats
requires new funding mechanisms. Some of the new spending includes $161
billion for clean electricity tax credits and $64 billion in new
Affordable Care Act subsidies.
The majority of new revenue from IRS audits and scrutiny will come from
those making less than $200,000 a year, according to a study from the
nonpartisan Joint Committee on Taxation. The committee found that just 4
to 9 percent of money raised will come from those making more than
$500,000, contrary to Democrats' claims that new IRS agents are necessary
to target millionaires and billionaires who hide income.
Senate Republicans argue that the roughly $45 billion the bill puts
towards hiring IRS agents could be better spent on other priorities, such
as helping students rebound from the learning loss suffered during COVID
school closures. A proposal by Sen. Tim Scott (R., S.C.) would amend the
spending bill to put the IRS money towards education tax credits.
"When faced with the decision to spend $45 billion on America’s largest
revenue collection agency, or give it back to parents to help them get
their kids the help they need, the Senate needs to choose the latter
option every single time," Scott told the Free Beacon.
The Washington Free Beacon previously reported that, despite White House
claims to the contrary, the Inflation Reduction Act does little to combat
inflation. A report from Moody's Analytics found the Democratic bill will
shave just .33 percent from the Consumer Price Index over the next decade.
Published under: Feature, Inflation, IRS, Joe Manchin, Taxes
https://freebeacon.com/policy/dems-poised-to-make-irs-larger-than-
pentagon-state-department-fbi-and-border-patrol-combined/