MAGA Mike’s Tax Giveaways for the Ultra-Wealthy Delay Critical Israel Aid, Would Blow Up the Deficit

In response to the Congressional Budget Office revealing that Mike Johnson’s MAGAnomics attempt to give tax breaks to the ultra-wealthy and mega corporations would increase the deficit by billions of dollars, DNC spokesperson Sarafina Chitika released the following statement: 

“Another day, another spectacular failure from MAGA Mike and House Republicans who are shamelessly playing politics with critical aid to Israel and ballooning the deficit while they’re at it. The damage to Johnson’s credibility is nothing compared to the danger of further delaying critical aid to our allies as well as humanitarian aid for thousands of innocent lives caught in the crossfire. Yet again, House Republicans have shown us that they cannot be trusted when the stakes are at their highest — and it is why their days in the majority are numbered.”

Multiple analyses — including from the nonpartisan Congressional Budget Office — have revealed that MAGA Mike’s proposal would increase the deficit by BILLIONS of dollars.

The Hill: “House GOP’s Israel-IRS bill could add over $12 billion to deficit: CBO”

Jake Sherman, Punchbowl News: “🚨 BREAKING — CBO says the House’s Israel aid bill is not offset at all. 

Will add $12.5B to the deficit in the next decade.

Cuts to IRS will decrease revenue by $26.7B”

Stephen Neukam, The Messenger: “CBO says GOP’s proposed offsets for their Israel aid bill — a deep cut to IRS funding — would actually increase the deficit by $12.5 billion over the next decade (!!)”

Washington Post: “GOP plan to fund Israel aid with IRS cuts would cost $90 billion, tax chief says”

Danny Werfel, IRS commissioner: “This type of the cut, over the cost of the Inflation Reduction Act, would actually cost taxpayers $90 billion — that’s with a ‘B.’”

Semafor: “The Committee for a Responsible Federal Budget said the GOP bill would add about $30 billion in red ink over a decade. Other independent analyses indicate IRS funding provides at least a two-fold return from stepping up audits on the ultra-rich.”

Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center: “Instead of being an offset, it would actually make matters worse. … The general rule of thumb that the budget scorekeepers use is it’s about 2-to-1. So, if you cut IRS funding [by $14 billion to $15 billion], you’re actually going to increase the deficit by about $30 billion.”

Steven Rattner, MSNBC economic analyst: “To reiterate: offsetting gov’t spending by cutting the IRS budget is like offsetting a fire with gasoline.”

MAGA Mike’s ploy to hold up Israel aid is a blatant attempt to advance his MAGAnomics agenda — attempting to give the ultra-wealthy a hall pass at the expense of our working families and our allies abroad.

HuffPost: “To Pay For Israeli Aid, GOP Wants To Make It More Expensive For You To File Your Taxes”

The Independent: “Republicans’ Israel bill would strip money from IRS ability to crack down on tax cheats”

Forbes: “New House Speaker Mike Johnson Ties Funding For Israel To IRS Budget Cuts”

Johnson’s MAGAnomics proposal to cut IRS funding approved as part of the Inflation Reduction Act is in lockstep with Donald Trump and other 2024 Republicans who want to repeal the law.

Insider: “Former President Donald Trump on Friday slammed the Democratic-led climate, health, and tax bill, arguing that Republican Senate Minority Leader Mitch McConnell of Kentucky was ‘taken for a ride’ by Sen. Joe Manchin of West Virginia.”

Haley: “[The Inflation Reduction Act] is a communist manifesto.”

DeSantis: “You know, the good thing is I think there’s a pretty clear path to being able to reverse a lot of this stuff. The things he’s doing through executive order, you could reverse right away. But even what they did with the Inflation Reduction Act, they passed that via budget reconciliation in the Senate. So with 50 votes, I think, you know, we win the presidency, I’m pretty sure we would win the Senate and keep the House. And so at that case, what they put in by reconciliation, you could repeal by reconciliation.”

Scott: “I would simply eliminate the IRA, the Inflation Reduction Act, which of course, is a lie from the pit of hell. … I would start the process of gutting that legislation.” 

Christie: “The Inflation Reduction Act was a mistake.”

Burgum on whether he would push to repeal the IRA: “Yeah.”

KARK: “In a statement Thursday, Gov. Asa Hutchinson came out in opposition to the Inflation Reduction Act, currently under debate in the senate. The act, a significant part of the Biden presidential agenda, puts billions of dollars into energy extraction and IRS enforcement, as well as health care reforms in Medicare drug pricing and Affordable Care Act extension.”

Johnson’s proposal for tax giveaways for the ultra-wealthy and corporate tax cheats comes as 2024 Republicans are vowing to make permanent Trump’s tax giveaways for the ultra-wealthy that left working families behind.

CBS News: “Two years after Trump tax cuts, middle-class Americans are falling behind”

The Guardian: “They were billed as a ‘middle-class miracle’ but according to a new book Donald Trump’s $1.5tn tax cuts have helped billionaires pay a lower rate than the working class for the first time in history.”

Trump on whether his second-term tax policies would echo those of his first term: “Yeah, and I’d do even more taxes.”

DeSantis: “The current rates that are due to expire, we want to keep those rates in place.” 

Brian Sullivan: “You’d keep those cuts going?”

DeSantis: “Yeah, we don’t want to see increases in taxes.”

Scott: “That 2017 tax reform bill—I was one of the four key authors of that bill. I’m excited about continuing to extend and making permanent those tax cuts.”

Haley: “Well, I think what I’d like to see is us go back to what Trump had under the tax cuts under him … I was there.”

Christie: “First of all, we need to extend the Trump tax cuts. I think those need to be extended.”

Ramaswamy on making permanent or expanding the Trump tax cuts: “I’d go a little further, Larry, than that, to be honest with you.”

Burgum in 2018: “I believe in these economic policies, I believe the tax bill is a great thing.”

Hutchinson in 2018: “​​President Trump’s #SOTU speech was good news for Arkansas as conservative policy changes in D.C. have led to tax cuts.”