IRS Funding Cut Doesn’t Offset Israel Aid in GOP Bill

House Speaker Mike Johnson cited concern about “fiscal stability” in saying that a Republican bill to provide aid for Israel would have “pay-fors in it.” But the legislation would increase the deficit, not pay for itself.

The bill calls for $14.3 billion in spending to respond to the attacks in Israel and proposes “budgetary offsets” by rescinding the same amount of funding to the Internal Revenue Service. That’s not an “offset,” multiple budget experts say. Reducing the IRS’ ability to collect taxes that are owed would lower revenues and therefore increase deficits.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement about the bill that “paying for new spending by defunding tax enforcement is worse than not paying for it at all. Instead of costing $14 billion, the House bill will add upward of $30 billion to the debt. Instead of avoiding new borrowing, this plan doubles down on it.”