President Joe Biden said Thursday he would veto any bill passed by the newly Republican-led House of Representatives that would significantly reduce IRS funding and raise taxes on middle-class Americans.
What Happened: Biden spoke about the economy and the White House's efforts to combat inflation, which the Labor Department reported rose 6.5% in December, down from 7.1% in November, indicating the Federal Reserve's aggressive interest rate hike campaign is lowering inflation.
The President spoke about the Fair Tax Act, introduced earlier by Rep. Earl L. "Buddy" Carter (R-Ga.) which seeks to eliminate all personal and corporate income taxes, the death tax, gift tax and payroll tax, as well as the need for the Internal Revenue Service (IRS).
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The Republican bill would also defund a component of the 2022 Inflation Reduction Act, which was passed by Democrats in Congress and provided $80 billion to the IRS to boost regulation, and revitalize its internal network.
“Come on,” Biden said, “Is this how the house Republicans are starting their new term? Cutting taxes for billionaires, raising taxes for middle-class families?”
If the bill became law, the government would lose an estimated $185 billion in revenue over the next decade due to a lack of infrastructure spending, ensuring that individuals and businesses pay their fair share of taxes.
“Let me be very clear,” Biden said sternly, “if any of these bills make it to my desk … I will veto them,” the President said.
“I’m ready to work with Republicans, but not on this kind of stuff,” Biden added.
Why It Matters: House Republicans on Monday passed the Family and Small Business Taxpayer Protection Act by a vote of 221-210 along party lines.
Republicans in Congress have reportedly misrepresented how the new IRS funding will be used, claiming that IRS auditors will target middle-class taxpayers.
Vice President Kamala Harris also blasted the bill, saying it would "allow too many millionaires, billionaires, and corporations to cheat the system."
Read Next: After Larry Summers, Rob Reich Goes After House GOP Over IRS Funding Cut Plan: 'Already Trying To Gut Congressional Ethics'
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