Dem Lawmakers Aware That 'Build Back Better' Will Increase Debt

Written By BlabberBuzz | Thursday, 18 November 2021 10:45 PM
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Dem Lawmakers Aware That 'Build Back Better' Will Increase Debt

President Joe Biden and other Democratic lawmakers have repeatedly claimed that the Build Back Better Act would be fully funded by new tax revenue collected by an improved Internal Revenue Service. Their vows, however, may fall flat, as new data suggests that even the expected tax hikes won't cut it.

The trimmed-down $1.85 trillion social policy and climate spending package was heavily expected to be funded by this new tax revenue. Now, however, it may only be partially covered, with the director of the Congressional Budget Office saying on Monday that the IRS proposal will bring in just a fraction of the total expected by the administration, according to The New York Times.

The IRS proposal, which is expected to be formally released on Friday, is projected by the office's head Phillip Swagel to bring in just $120 billion over a decade versus the $400 billion expected.

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With the proposal expected to pose another setback for the package, the White House has reportedly started bracing lawmakers for the lesser amount estimated from the budget office, which will likely prove that the package will not be fully covered, as claimed.

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According to The New York Times, "Senior administration officials are urging lawmakers to disregard the budget office assessment, saying it is being overly conservative in its calculations, failing to properly credit the return on investment of additional IRS resources and overlooking the deterrent effects that a more aggressive tax collection agency would have on tax cheats."

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"In this one case, I think we've made a very strong empirical case for CBO not having an accurate score," said the Treasury's assistant secretary for economic policy Ben Harris in an interview. "The question is would they rather go with CBO knowing CBO is wrong, or would they want to target the best information they could possibly have?"

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The White House expects taxpayers to be more compliant with the IRS once they see how those who avoid taxes receive consequences, while the CBO "tends to believe that the tax collection prowess of more enforcement agents will wane over time," according to The New York Times.

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The possibility of a dismal assessment could sway the decisions of moderate Democrats in the House, who have stated that they wanted to wait until the assessment came from the CBO before moving forward.

The budget office's preliminary assessment made this year stated that the administration was optimistic in their estimates. Those who previously avoided paying taxes would just find other avenues if the package were to pass.

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Republican Congress members though have expressed concerns with increasing the size of the IRS.

"The IRS will double in size," Representative Mike Kelly said last month. "It will be more involved in the day-to-day lives of every American. And the result will be an invasion of privacy and the heavy hand of the government squeezing out smaller, more local businesses."

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