A weakened IRS devastates tax credibility and enforcement. That causes widespread evasion and underfunding of every essential government function

Failing to adequately fund the IRS would be particularly ill-timed, as President Trump and congressional Republicans intend to propose a broad revamp of the tax code that could create new opportunities for tax avoidance — and an even greater need for IRS resources to ensure compliance. In particular, GOP tax plans call for preferential treatment of pass-through business income that would invite massive tax avoidance by wealthy taxpayers, costing hundreds of billions of dollars over the next decade, according to the Tax Policy Center (TPC).[4] An under-resourced IRS would be poorly positioned to enforce the new statutes and regulations that would accompany a tax overhaul. The combination of increased avoidance opportunities and weakened IRS enforcement capacity would further reduce revenues and undermine the integrity of the tax system. The IRS performs a basic and essential function of government: collecting the revenue to fund our military and key domestic investments, including public safety, education, and health research, and programs that provide needed support to retirees, seniors, people with disabilities, and low-income households. An underfunded IRS poses a threat not only to IRS’s effectiveness, but to the public’s trust that the tax laws will be enforced fairly. Policymakers should provide the resources the IRS needs to do its job effectively.