Skip to content Skip to footer

Warren Calls for Increased Funding for the IRS, Which Has Been Gutted by GOP

Republicans have spent years cutting IRS funding, lending a helping hand to wealthy tax dodgers.

Sen. Elizabeth Warren talks with reporters after the Senate Democratic policy luncheon in the Capitol on Tuesday, July 13, 2021.

Sen. Elizabeth Warren (D-Massachusetts) is leading a call for increased funding for the Internal Revenue Service (IRS), which is anticipating a “frustrating season” for taxpayers due to underfunding issues brought on by Republicans and corporate interests.

Warren, Sen. Jeff Merkley (D-Oregon) and 13 other senators sent a letter to Treasury Secretary Janet Yellen this week, urging the secretary to do everything in her power to prevent challenges that taxpayers – particularly those who are low-income – may face during this year’s tax season. The lawmakers call for a minimum increase of 14 percent in annual funding for the IRS, as well as an $80 billion investment over the next decade, a measure that President Joe Biden proposed last year to crack down on wealthy tax dodgers.

“We urge you to do everything you can to alleviate challenges for tax filers this year, especially lower-income Americans, while also continuing to work with Congress to make long-overdue investments in the IRS,” they wrote. “We are deeply concerned about the challenges that our constituents will face during this tax filing season, including service issues that have become all too familiar.”

The IRS recently said that it is anticipating “enormous challenges” during this year’s tax season, including delays and service issues. The agency is currently in crisis due to an incredibly chaotic tax season in 2021, which it called “the most challenging year ever for taxpayers” in its annual report. The agency ended the year with about 6 million unprocessed individual tax returns, and closed the filing season last year with over 35 million unprocessed returns, which was four times more than they had before the pandemic.

In their letter, Warren and fellow lawmakers pointed out that the agency only answered one out of every nine calls for assistance, according to its annual report. As 2021’s problems spill into 2022, the IRS is warning that taxpayers may face the same issues this year, or worse.

The lawmakers say that increased funding could help alleviate some of these problems and prevent them from happening in the future.

“It is clear that long-term underfunding, combined with the extra burdens posed by the ongoing pandemic, is the primary reason for the IRS’ challenges,” they wrote.

In a letter to Warren last year, IRS Commissioner Chris Rettig said that the agency has gotten a 22 percent budget cut since 2010. This has led to a corresponding 22 percent reduction in staff, including a 32 percent reduction in enforcement staff. Meanwhile, the number of tax filers has increased, compounding the agency’s problems.

According to Rettig, the funding issues started years ago; for decades, IRS staffing increased at a rate relative to the country’s gross domestic product (GDP). But that trend has now reversed, and while the GDP has increased by 76 percent since 1995, IRS staffing has decreased by 32 percent overall.

These underfunding issues have been brought on by “corporate lobbyists and anti-tax extremists” who have pushed to cut IRS funding over the years, the lawmakers wrote. “Last year, Republican Senators were initially open to including IRS funding in an early framework for the bipartisan Infrastructure Investment and Jobs Act, but quickly reversed course under pressure from corporate and conservative lobbyists.”

Reporting has found that as Republicans have cut IRS funding over the years, corporations and the wealthy benefit. With less funding, the agency isn’t able to perform as many audits and often doesn’t have the resources to investigate the complex ways that the rich can hide their incomes from auditors. Instead, at the behest of Republicans, the agency has been going after low-income taxpayers in order to catch supposed fraud from the earned income tax credit.

Thanks to tax dodgers, the government has missed out on $7 trillion in revenue over the course of a decade, Yellen estimated last year. Rettig estimated that the IRS misses out on as much as $1 trillion a year.

“This right-wing crusade against the IRS is achieving its primary goal – decreasing U.S. government revenue and denying the IRS the resources it needs to identify and stop the complex tax evasion by the top 1 percent,” the lawmakers wrote.

Truthout Is Preparing to Meet Trump’s Agenda With Resistance at Every Turn

Dear Truthout Community,

If you feel rage, despondency, confusion and deep fear today, you are not alone. We’re feeling it too. We are heartsick. Facing down Trump’s fascist agenda, we are desperately worried about the most vulnerable people among us, including our loved ones and everyone in the Truthout community, and our minds are racing a million miles a minute to try to map out all that needs to be done.

We must give ourselves space to grieve and feel our fear, feel our rage, and keep in the forefront of our mind the stark truth that millions of real human lives are on the line. And simultaneously, we’ve got to get to work, take stock of our resources, and prepare to throw ourselves full force into the movement.

Journalism is a linchpin of that movement. Even as we are reeling, we’re summoning up all the energy we can to face down what’s coming, because we know that one of the sharpest weapons against fascism is publishing the truth.

There are many terrifying planks to the Trump agenda, and we plan to devote ourselves to reporting thoroughly on each one and, crucially, covering the movements resisting them. We also recognize that Trump is a dire threat to journalism itself, and that we must take this seriously from the outset.

Last week, the four of us sat down to have some hard but necessary conversations about Truthout under a Trump presidency. How would we defend our publication from an avalanche of far right lawsuits that seek to bankrupt us? How would we keep our reporters safe if they need to cover outbreaks of political violence, or if they are targeted by authorities? How will we urgently produce the practical analysis, tools and movement coverage that you need right now — breaking through our normal routines to meet a terrifying moment in ways that best serve you?

It will be a tough, scary four years to produce social justice-driven journalism. We need to deliver news, strategy, liberatory ideas, tools and movement-sparking solutions with a force that we never have had to before. And at the same time, we desperately need to protect our ability to do so.

We know this is such a painful moment and donations may understandably be the last thing on your mind. But we must ask for your support, which is needed in a new and urgent way.

We promise we will kick into an even higher gear to give you truthful news that cuts against the disinformation and vitriol and hate and violence. We promise to publish analyses that will serve the needs of the movements we all rely on to survive the next four years, and even build for the future. We promise to be responsive, to recognize you as members of our community with a vital stake and voice in this work.

Please dig deep if you can, but a donation of any amount will be a truly meaningful and tangible action in this cataclysmic historical moment. We are presently looking for 98 new monthly donors before midnight tonight.

We’re with you. Let’s do all we can to move forward together.

With love, rage, and solidarity,

Maya, Negin, Saima, and Ziggy