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Trang chủ » IRS funding in focus as deal on debt ceiling draws near

IRS funding in focus as deal on debt ceiling draws near

Debt ceiling deal close, IRS funding in spotlight

Debt ceiling deal close, IRS funding in spotlight

Negotiators from the White House and Congress have come close to agreeing on a compromise deal to raise the debt ceiling for two years. With only six days left before the nation faces a significant threat of debt default, the proposal would see some of the highest priorities of House Republicans addressed in exchange for their support to raise the debt ceiling. Two sources familiar with the talks disclosed that Republicans would secure a cut in baseline government spending for fiscal year 2024 and rescind some of the $80 billion allocated to the Internal Revenue Service as part of 2022’s Inflation Reduction Act. The funding from the cut in the IRS allocation would cover the domestic shortfall created by the Republican spending cuts, leading to technical cuts in the overall topline figure. However, funding for the Pentagon and veterans’ health benefits would remain uncut, with their funding seeing an increment next year.

Although the details of the proposal were still fluid on Friday morning, the IRS funding negotiations remained “a live issue” according to officials. Spokespeople for Senate Majority Leader Chuck Schumer, President Joe Biden, and House Speaker Kevin McCarthy did not immediately respond to requests for comment on the emerging outlines. Both parties could consider the package a win with Republicans securing a cut in government spending for 2024, while Democrats would argue that they have preserved most of the domestic programs at funding levels equal to or just below their current ones.

FAQs:

Q: What is the debt ceiling?
A: The debt ceiling is the limit that the US federal government sets on how much money it can borrow to fund its minor expenditures.

Q: What happens if the US reaches its debt ceiling?
A: Once the US reaches its debt ceiling, it cannot borrow any more money. If Congress does not increase the debt ceiling, it could lead to the US defaulting on its debt, which could harm the country’s economy.

Q: Why is it important to compromise on raising the debt ceiling?
A: Without an increase in the debt ceiling, the US could begin to default on its debt obligations, which could have serious economic consequences for the country. It is vital that both sides of the aisle come to a compromise and raise the debt ceiling to avoid such an outcome.

Q: What will happen to domestic programs if the debt ceiling is not raised?
A: Without an increase in the debt ceiling, funding for domestic programs that benefit citizens, such as healthcare, education, and environmental protection, would be cut, leading to a dangerous shortage of resources in these areas.

Debt ceiling deal close, IRS funding in spotlight
Debt ceiling deal close, IRS funding in spotlight

IRS funding in spotlight as debt ceiling deal nears

Negotiators in the White House and Congress are nearing a deal to increase the debt ceiling for two years, as the threat of a debt default approaches in just six days. According to sources familiar with the talks, House Republicans will roll back baseline federal spending on most discretionary programs in 2024, and take back some of the $80 billion allocated to the Internal Revenue Service in 2022 as part of the Inflation Reduction Act, in exchange for voting to raise the debt ceiling. The rescinded IRS money will then be used to cover the shortfall in domestic funding created by the GOP spending cuts, preserving the programs while technically cutting the overall topline figure. The Pentagon and veterans health benefits will be spared from any cuts and also see funding increases next year. The details of the agreement, which includes the IRS funding trade-off, remain fluid. Representatives for House Speaker Kevin McCarthy, President Joe Biden and Senate Majority Leader Chuck Schumer have not yet responded to requests for comment. The deal offers both parties a win, with Republicans claiming they secured a cut in baseline government spending for fiscal year 2024 and Democrats preserving the majority of domestic funding levels. The story is developing, with updates to follow.

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