(Bloomberg) — U.S. House Republicans are proposing a 7.7 percent cut to the IRS budget, setting the boundaries for a budget standoff over the next few months.
With a $10.1 billion budget for the Internal Revenue Service, Republicans rejected President Barack Obama's call for an 18 percent increase that would allow the beleaguered agency to end a hiring freeze and answer more phone calls from taxpayers.
The parties are now $2.8 billion apart on IRS funding — a rounding error for the federal budget but an enormous gulf on a politically sensitive topic.
"Every day, Americans are making tough decisions about their own budgets and rightfully expect federal agencies to do the same," said Representative Ander Crenshaw, a Florida Republican who oversees the IRS budget.