House Speaker Mike Johnson’s $14.3 billion Israel aid package was praised by conservatives for offsetting the funding from the IRS. However, a report from the Congressional Budget Office states that the offset does not actually offset the deficit.
The CBO report reveals that moving the IRS funding, which was part of an $80 billion spending increase for the agency, to the Israel aid package would add $12.6 billion to the deficit over the next decade due to lost revenues from the tax agency.
Furthermore, removing the $14.3 billion from the IRS would result in a $26.8 billion decrease in tax revenues over the next decade.
When asked about the CBO report, Mr. Johnson expressed no surprise and criticized the notion that cutting spending is considered an increase to the deficit.
Mr. Johnson’s Israel aid proposal was in response to President Biden’s $106 billion emergency supplemental request, which included funding for Ukraine, Israel, Taiwan, and border policies. However, the plan has faced criticism from both Democrats and Republicans in the Senate, with concerns over the lack of Ukraine aid and the movement of IRS funding. The White House has threatened to veto the bill. Additionally, some House Republicans, including Reps. Marjorie Taylor Greene and Thomas Massie, oppose the bill due to concerns about increasing the national debt.
The bill is scheduled to be considered by the House Rules Committee on Wednesday and is expected to be voted on in the House on Thursday.