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Increased IRS Funding in Limbo After Reconciliation Slim-Down

July 22, 2022, 8:45 AM

Increased IRS funding, a major piece of President Joe Biden’s domestic agenda, remains in limbo after Sen. Joe Manchin (D-W.Va.) put the brakes on Democrats’ broader tax and spending plan.

The funding measure is a policy unicorn: an increase in spending that independent experts expect would increase revenue. That would seem to fit Manchin’s desire to reduce the deficit while matching his demand to not increase taxes. When Democrats saw broader spending as possible, the funding bump of $80 billion over 10 years looked as though it would be an easy way to pay for a portion of it, because ...