The House GOP’s $14 billion aid package for Israel would be offset with cuts to the IRS Cash Account in the Biden administration’s Inflation Reduction Act. The Inflation Reduction Act, which was signed into law last month, is a sweeping program of tax cuts and other measures designed to reduce inflation and generate economic growth. The Cash Account that would be impacted by the GOP’s proposed offset is designed to help ensure that the IRS has sufficient resources and flexibility to respond to tax relief requests, particularly during this time of economic hardship. It is unclear how much money would be taken from the Cash Account in order to pay for the Israel aid package; however, the cuts would likely compromise the IRS’s ability to respond to taxpayers’ needs.
