Press Release
Posted:
WASHINGTON, DC – Ranking Member of the House Ways and Means Subcommittee on Select Revenue Measures Rep. Mike Thompson (CA-04) co-led a briefing with Ranking Member of the House Appropriations Subcommittee on Financial Services and General Government Rep. Steny H. Hoyer (MD-05) and Ranking Member of the Ways and Means Committee Rep. Richard E. Neal (MA-01). They were also joined by Ranking Member of the House Appropriations Committee Rep. Rosa DeLauro (CT-03). The members highlighted the Trump Administration’s continued attacks on the Internal Revenue Service (IRS).
The Members heard testimony from Former IRS Commissioners John Koskinen, Fred Goldberg, Danny Werfel, as well as Natasha Sarin, President of the Yale Budget Lab, and Nina E. Olson, Executive Director of the Center for Taxpayer Rights, as they discussed the consequences that IRS cuts have on law enforcement and America's fiscal responsibility. Watch a recording of the briefing here.
“The President’s decision to underfund the IRS is no accident. This administration is ensuring that the IRS can’t carry out audits of corporations and high-income earners, handing a free pass to their wealthy donors and guaranteeing billions of dollars lost in unpaid taxes. Meanwhile, the services ordinary Americans rely on will be worse. My constituents, and all Americans, deserve a government that works for them, not one that caters to the wealthy and the well-connected," said Rep. Mike Thompson (CA-04).
"For years, the IRS has been desperately underfunded and understaffed, leading hundreds of billions of dollars in legally owed taxes to go uncollected each year," Ranking Member Hoyer said. "An attack on the IRS is an attack on America's fiscal health."
“The Trump Administration’s relentless effort to gut the IRS is nothing short of sabotage,” said Ranking Member Neal. “When the IRS works, America works, but Republicans are intent on tearing it down to protect the wealthy few. Their cuts mean fewer audits for millionaires, more burdens for honest taxpayers, and billions in lost revenue that could be invested in workers and families.”
"I spent 20 years in the private sector helping to turn around large, failed enterprises. And it never occurred to us to starve the accounts receivable operations of any company to see how they did. The goal was to protect revenues, not lose them. I think it is nonsensical to maintain, on the one hand, that you’re concerned about the size of the deficit and, on the other hand, to undermine the agency charged with collecting taxes owed," said Fmr. IRS Commissioner John Koskinen (Obama Administration, Trump Administration).
"Any executive – whether they are from a public company, a large of small private company, or from the government – will tell you that there is no way to effectively run an enterprise when each year's budget is completely unknown and unknowable in advance. Good management and strategic direction requires forward planning. You simply cannot do that if you do not have any idea what the budget outlook will be from year to year," said Fmr. IRS Commissioner Fred T. Goldberg, Jr. (H.W. Bush Administration).
"This is a critical time for the tax agency – and the nation. While the brave men and women of our armed services stand in harm's way across the globe and members of both parties have concerns about the deficit, there should be no political disagreement that the success of the IRS is vital to the short-term and long-term success of our country, whether it’s serving taxpayers or collecting revenue critical to the health and safety of the United States and our citizens," said Fmr. IRS Commissioner Danny Werfel (Biden Administration).
"The combination of staffing cuts, seriously damaged employee morale, technology starts and stops, replacement of human intervention with digital tools and decision-making, and erosion of the confidentiality of tax return and taxpayer return information – none of this bodes well for US taxpayers and the protection of their fundamental rights under the Taxpayer Bill of Rights," said Nina E. Olson, Executive Director, Center for Taxpayer Rights.
"The IRS interacts with every household and every business, and its dedicated civil servants take that responsibility seriously. Its workforce must grow and evolve, not indiscriminately be ransacked. It is unfortunate that the IRS has found itself under siege and without the tools its employees need to do the work they care so deeply about. I hope the testimony today, from a group of bipartisan tax experts across the ideological spectrum, can help to encourage course correction. If the IRS is not adequately funded we will be leaving significant revenue on the table and eroding our democracy," said Natasha Sarin, President, Yale Budget Lab.
A recording of the full meeting is available here. Witnesses' prepared remarks can be found here.