S.175 - To rescind the unobligated balances of amounts appropriated for Internal Revenue Service enhancements and use such funding for an External Revenue Service. (119th Congress)
Summary
S.175 proposes to rescind unobligated funds previously allocated for Internal Revenue Service (IRS) enhancements under the Inflation Reduction Act of 2022. The bill suggests reallocating these funds to establish and administer an External Revenue Service. This shift aims to change the focus and potentially the structure of revenue collection and oversight.
Expected Effects
If enacted, S.175 would halt planned IRS modernization and expansion efforts funded by the Inflation Reduction Act. The creation of an External Revenue Service could lead to significant changes in how taxes are collected and managed. This could impact taxpayers and the overall efficiency of revenue collection.
Potential Benefits
- Potentially increased accountability and transparency through an external agency.
- Opportunity to streamline revenue collection processes.
- Possible reduction in perceived IRS overreach.
- Could lead to a more taxpayer-friendly approach to revenue services.
- May foster innovation in revenue collection methods.
Potential Disadvantages
- Disruption of ongoing IRS modernization efforts.
- Potential for increased costs associated with establishing a new agency.
- Risk of decreased efficiency during the transition period.
- Uncertainty regarding the effectiveness of a new External Revenue Service.
- Possible duplication of efforts and jurisdictional conflicts.
Constitutional Alignment
The bill's focus on rescinding and reallocating funds falls under Congress's power of the purse, as outlined in Article I, Section 9, Clause 7 of the Constitution, which grants Congress the authority to control government spending. The creation of a new agency is within the legislative powers granted to Congress under Article I, Section 8, which allows Congress to make all laws necessary and proper for carrying out its enumerated powers, including collecting taxes.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).