[Congressional Record Volume 169, Number 64 (Tuesday, April 18, 2023)]
[Senate]
[Pages S1151-S1152]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Tax Day
Mr. THUNE. Mr. President, today is Tax Day, and I think it is
probably fair to say it is not most Americans' most favorite day. No
one enjoys writing a check to the IRS or contemplating just how much of
his or her yearly earnings goes to the Federal Government, especially
when the Federal Government doesn't always make the best use of
taxpayer dollars.
If you have a question for the IRS, things can get even more grim.
The IRS does not exactly have a reputation for excellent customer
service. During fiscal year 2021, the Agency answered just 11 percent
of the 282 million calls it received--11 percent. That means that 250
million taxpayer calls went unanswered--250 million. And 2022 was
barely better. During fiscal year 2022, 87 percent of taxpayer calls--
87 percent--went unanswered. Any business with a customer service
record like that would soon be out of business.
That is not even the worst of it. On top of its customer service
problems, the IRS has a troubling record of mishandling taxpayer data.
Everyone remembers the infamous targeting of conservative groups for
extra scrutiny under the Obama IRS. Then there was the 2021 leak or
hack of confidential taxpayer information that ended up in the hands of
the left-leaning organization ProPublica and was used to advance a
partisan agenda. Last September, the IRS reported that it had
inadvertently posted confidential taxpayer data for around 120,000
individuals on its website. Then, after fixing its mistake, the IRS
inadvertently made much of that same information public again just 2
months later.
It is no surprise that interacting with the IRS doesn't exactly
inspire confidence. Given the IRS's record, you would think everyone
could agree the Agency is ripe for reform. Democrats, however,
apparently thought the Agency was simply ripe for more funding, a lot
more funding--funding targeted not toward reforming taxpayer services
but overwhelmingly toward increasing tax enforcement.
The so-called Inflation Reduction Act Democrats passed last August
contained a staggering $80 billion for the IRS. Just 4 percent of that
funding--4 percent out of $80 billion--was earmarked for improving
taxpayer services. More than half, roughly $46 billion, was earmarked
for increased audits and other tax collection efforts.
But that is not all. President Biden is now proposing to boost the
IRS's budget by 15 percent next year--over and above the massive
funding boost the IRS already received from the Inflation Reduction
Act. And it doesn't even end there. The President's budget would also
provide a separate and additional $29 billion to the IRS for
enforcement--again, in addition to the $46 billion for enforcement the
IRS received last August.
I don't need to tell anyone that President Biden's campaign to flood
the IRS with unprecedented funding is motivated not by a desire to
improve the Agency's performance but by a need to find money to help
offset some of the cost of Democrats' Green New Deal schemes and other
big-government spending.
There is reason to be concerned about where the President will be
getting all this money he expects to collect. The IRS has pledged not
to use its increased funding to raise audit rates on small businesses
and households making under $400,000 a year ``relative to historic
levels.'' But not only is it not clear what the Agency means by
``historic levels,'' there is also nothing to prevent the Biden IRS
from going back on that commitment--if, for example, the President
finds he can't pay for his Green New Deal schemes just by increasing
audits of higher earning taxpayers.
Suddenly and dramatically increasing the size of any government
Agency is a cause for concern. Are there plans in place to make sure
the money is used wisely, efficiently? Can the Agency in question
handle such a swift expansion? These are serious questions no matter
what Agency we are talking about, but these questions are particularly
relevant when the Agency in question--in this case, the IRS--is already
doing a poor job of handling its basic responsibilities.
Any funding infusion like the $80 billion the IRS received in August
should
[[Page S1152]]
be paired with commensurate oversight measures, including a requirement
for a comprehensive strategy and effective execution from the IRS and
appropriate safeguards and accountability for taxpayers. But that,
interestingly enough, is something Democrats failed to include in their
legislation, and they have shown little interest in IRS oversight
since.
That cannot continue.
We need to put safeguards in place to ensure that the tens of
billions of dollars Democrats have funneled to the IRS are being used
responsibly and efficiently and that the IRS is not mismanaging its tax
collection powers.
The National Taxpayer Advocate has noted that the money from the so-
called Inflation Reduction Act has been ``disproportionately allocated
for enforcement activities and should be reallocated to achieve a
better balance with taxpayer service needs and IT modernization.''
``We need to put taxpayers first,'' the advocate said, and she is
right. But, unfortunately, Democrats' priority is not taxpayers; it is
tax collection.
Earlier this year, I introduced legislation along with Senator Chuck
Grassley, cosponsored by all Senate Finance Committee Republicans, to
improve oversight and hold the IRS accountable for its spending
decisions. Our legislation, the IRS Funding Accountability Act, would
require the IRS to provide Congress with an annual plan for how the
Agency intends to use its new funding--a plan that could be rejected by
Congress with a joint resolution of disapproval.
The IRS would also be required to provide Congress with quarterly
updates on implementation of the spending plans, and there would be
real consequences for failing to submit plans and reports on time,
including the rescission of funds until the IRS complies with reporting
requirements.
The IRS did recently release an underwhelming report on how it
intends to spend its funding windfall, but the report, which was
submitted more than 45 days late, was exceptionally vague and short on
important details. Our legislation would require the IRS to put forward
detailed plans on time and ensure that Congress has the ability to
prevent misuse of funds or violations of taxpayer receipts. And I would
hope that my Democrat colleagues would recognize the need for this kind
of commonsense legislation.
Any massive funding infusion to a Federal Agency needs to be
accompanied by meaningful oversight to protect taxpayer dollars and
doubly so when it comes to an Agency like the IRS with a track record
for poor customer service and mishandling Americans' priority
information. As we move forward, I will continue to do everything I can
to push for accountability at the IRS to make sure that taxpayers'
rights are respected and that Americans' tax dollars are being used
responsibly.
I yield the floor.
I suggest the absence of a quorum.
The ACTING PRESIDENT pro tempore. The clerk will call the roll.
The senior assistant legislative clerk proceeded to call the roll.
Mr. DURBIN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Padilla). Without objection, it is so
ordered.
Mr. DURBIN. Mr. President, I ask unanimous consent to speak and
complete my remarks before the rollcall starts.
The PRESIDING OFFICER. Also without objection.