A $21.4 billion in IRS funding agreed by Republicans and President Biden would cut as part of the debt ceiling agreement would cost the nation an estimated $40 billion in lost tax revenue.

A total of $21.4 billion in IRS funding agreed upon by Republicans and President Biden would be cut as part of the debt ceiling agreement

An initial analysis from the Budget Office of Congress was released on Thursday that estimated  $21.4 billion in IRS funding cuts that President Biden and Republicans agreed to enact as part of their debt ceiling solution proposal would result in $40.4 billion in lost tax revenue. This will add to the federal budget deficit.

They hold the entire economy hostage and threaten a global financial meltdown. The Republicans protected the creepy billionaires, said Sen. Sheldon Whitehouse.

Republicans are compelling cuts to the IRS funding that add $19 billion to the federal budget deficit. By contrast, President Biden’s budget plan would have suppressed wealthy tax cheats while making growth investments in workers, families, and small businesses. The budget plan will reduce the deficit by $3 trillion.

Read Also: NAACP Condemns Debt Ceiling Raise, Citing Negative Effects On Black Americans

The $20 billion in IRS funding cuts that would boost the agency aren’t a sure thing

The debt ceiling solution law is now headed to President Joe Biden’s desk after the lawmakers passed it late Thursday. The bill includes $1.4 billion in cuts to IRS funding.

Read Also: New Deal For Debt Ceiling To Affect Federal Benefits For Millions Of Americans