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Republicans win faster IRS cuts in funding deal on January 10, 2024 at 11:00 am Business News | The Hill

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A $1.66 trillion top-line spending agreement announced by congressional leaders this week will accelerate funding cuts to the Internal Revenue Service favored by Republicans.

The bipartisan deal would cut $10 billion from the IRS during fiscal 2024, one year earlier than Democrats and Republicans previously agreed on in a deal to raise the debt limit last summer. The debt limit deal included $20 billion in overall reductions to a controversial IRS funding boost.

The acceleration is the latest reduction in resources for the IRS, which was slated to receive $80 billion in funding through the 2022 Inflation Reduction Act.

The additional funding was intended to redesign the agency and reinvigorate U.S. tax collections with a focus on the richest taxpayers. But Republicans took immediate aim at the IRS funding increase, voting to repeal the entire allotment last year upon retaking the House and whittling away at it through successive funding deals.

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“The concessions we achieved will include an additional $10 billion in cuts to the IRS mandatory funding (for a total of $20 billion), which was a key part of the Democrats’ ‘Inflation Reduction Act,’” Speaker Mike Johnson (R-La.) wrote in a Sunday letter to fellow legislators.

“While these final spending levels will not satisfy everyone, and they do not cut as much spending as many of us would like, this deal does provide us a path to … move the process forward [and] reprioritize funding within the topline towards conservative objectives,” Johnson wrote, potentially indicating further pressure on the IRS in the future.

Republicans are now front-loading IRS cuts and paving the way for additional drawdowns in subsequent years, especially if they win big in the 2024 elections.

The new timetable means that one-quarter of the $80 billion funding bump for the IRS over the next decade has been nixed entirely within fiscal 2024.

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While experts say the remaining $60 billion is still more than enough for the IRS to push ahead with the main features of its renovation, the rapid pace of rescission suggests that additional cuts could force the IRS to alter course more substantially.

“This is a commitment. It’s actually going to happen,” Janet Holtzblatt, former head of tax policy studies in the tax analysis division of the Congressional Budget Office, told The Hill on Monday. “It does quietly open the door for more cuts down the road.”

“The cuts in the past have already been established. There is that room now to cut forward. [In no way] is it a good thing for the IRS,” she added.

However, Democrats say the new timetable for IRS cuts won’t disturb the agency’s ongoing modernization and operational update.

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“Thanks to this agreement preserving the same funding levels agreed to in the [Fiscal Responsibility Act], the IRS will still be able to maintain the critical investments we secured during the last congress,” a congressional Democratic aide said in a statement sent to reporters.

“By securing the $772.7 billion for non-defense discretionary funding, we can protect key domestic priorities,” Senate Majority Leader Chuck Schumer (D-N.Y.) and House Democratic Leader Hakeem Jeffries (D-N.Y.) said in a Sunday statement.

Democrats said the top-line deal paves the way for a more normal appropriations process for the rest of the year, as opposed to the chaotic negotiations that marked 2023 and took place at the risk of debt default and government shutdowns.

“Now the Appropriations Committees, led by Chair Patty Murray and Vice Chair Susan Collins in the Senate and Chairwoman Kay Granger and Ranking Member Rosa DeLauro in the House, can prepare full-year appropriations bills, free of poison pill policy changes,” Schumer and Jeffries said.

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Tax experts told The Hill that the likely effect of the cuts would be hiring fewer auditors, which is the most difficult part of the IRS’s new enforcement push. Auditing big companies and wealthy individuals takes a high level of expertise, they said, and auditors can often make more money in the private sector.

“This money did give the agency certainty with respect to hiring, because you just can’t bring in people one year and then say, ‘OK, we can’t have them the next’,” Holtzblatt said.

Taking away funds for tax collections will add to the national deficit, which has risen to higher, historic levels following the pandemic and is a sore spot for Republicans. 

Total public debt rose to 120 percent of gross domestic product (GDP) in the third quarter of 2023 after spiking above 130 percent in the immediate aftermath of the pandemic. In the eight years before the pandemic, national debt stayed at roughly the same level as GDP.

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The Congressional Budget Office estimated that the initial $80 billion funding bump for the IRS over the subsequent decade would result in $200 billion in additional revenue, for a net deficit reduction of around $120 billion, or around $12 billion a year.

That’s just 1.7 percent of the annual tax gap, which is the amount of money owed to the government each year but isn’t collected. Projected estimates of the tax gap updated in October put that number at $688 billion in tax year 2021.

Most of that comes from people and companies underreporting what they owe. Underreported taxes totaled $542 billion in tax year 2021 from an average $445 billion in tax years 2017-2019.

Advocacy organizations that support federal economic programming as well as budget hawks with an eye on the national deficit are united in their disapproval of the shrinking IRS budget.

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“Republicans profess concern about budget deficits. However, slashing IRS funding will only worsen the deficit by letting wealthy tax cheats off the hook. And there’s every reason for Democrats to expect that if they agree to Republicans’ blackmail over the IRS now that Republicans will demand further leniency for billionaires next year,” Adam Ruben, director of the Economic Security Project Action, said.

“Rather than passing legislation to expand the tax gap, Congress should be focused on efforts to further improve tax compliance,” the Committee for a Responsible Federal Budget, a Washington think tank, said in an October statement on IRS funding rescissions. “Such efforts have a long history of bipartisan support as they offer a way to raise revenue without increasing taxes.”

The IRS declined to answer questions from The Hill about the accelerated budget cuts and their effect on operations and planning at the agency.

​Business, News, appropriations bills, budget, budget deficit, IRS, irs funding, IRS funding boost, Mike Johnson A $1.66 trillion top-line spending agreement announced by congressional leaders this week will accelerate funding cuts to the Internal Revenue Service favored by Republicans. The bipartisan deal would cut $10 billion from the IRS during fiscal 2024, one year earlier than Democrats and Republicans previously agreed on in a deal to raise the debt limit…  

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The Cities Bracing for Trump’s Immigration Crackdown

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In the wake of Donald Trump’s recent election victory and his promise of “the largest deportation operation in American history,” several major U.S. cities are bracing for potentially seismic shifts in their economic and social landscapes. As the nation grapples with the implications of this proposed policy, urban centers that have long been havens for immigrant communities find themselves at the epicenter of a looming storm.

Los Angeles, often dubbed the “City of Angels,” stands to lose more than its celestial nickname suggests. As a primary gateway for immigrants, the city’s vibrant tapestry of cultures and its economic engine could face significant disruption. From the bustling streets of Koreatown to the sun-drenched orchards of the Central Valley, the absence of undocumented workers could leave gaping holes in the city’s workforce and cultural identity.

Across the country, New York City, with its iconic skyline and melting pot reputation, faces its own reckoning. The Big Apple’s 5.9 million immigrants, many of whom are undocumented, form the backbone of industries ranging from construction to healthcare. The potential exodus could transform neighborhoods like Jackson Heights and Flushing, altering the very essence of what makes New York a global city.In the Sunshine State, Miami’s tropical allure belies the turbulent times ahead. Home to 2.5 million immigrants, the city’s economy relies heavily on sectors like tourism and hospitality – industries where undocumented workers often fill crucial roles. The potential deportation of these workers could send shockwaves through Miami’s economic ecosystem, from South Beach’s glitzy hotels to the agricultural heartlands of South Florida.

Chicago, the “City of Big Shoulders,” may find those shoulders significantly weakened. With 1.7 million immigrants in its metropolitan area, the Windy City’s diverse neighborhoods and industries face an uncertain future. From the meatpacking plants to the tech startups, Chicago’s economic resilience could be tested like never before.

In the Lone Star State, Houston and Dallas stand as twin testaments to the complexities of immigration policy. These Texas titans, each home to large immigrant populations, could see their booming economies stumble. The construction sites that dot their ever-expanding skylines and the service industries that keep these cities humming could face unprecedented labor shortages.

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Out West, the San Francisco Bay Area’s reputation as a bastion of innovation and progress could be challenged. The region’s tech industry, often reliant on immigrant talent, might find itself grappling with a new reality. From Silicon Valley’s coding campuses to the agricultural expanses of the Central Valley, California’s economic powerhouse could face a reckoning. Phoenix, rising from the Sonoran Desert, could see its growth trajectory altered. As Arizona’s urban center, it stands at the forefront of the immigration debate, potentially facing not just economic impacts but social and political upheaval as well.

These cities, along with others like San Diego and Las Vegas, are not just facing potential economic disruptions. They are staring down the barrel of profound social change. Family separations, community fragmentation, and the erosion of cultural enclaves built over generations are all possible consequences of mass deportations. Moreover, the fiscal implications are staggering. Undocumented immigrants contribute billions in taxes annually, often without receiving the full benefits of their contributions. Their sudden absence could leave gaping holes in city budgets, potentially affecting public services and infrastructure projects.

As these urban centers brace for impact, the debate rages on. Supporters of stricter immigration policies argue for the need to enforce laws and protect American jobs. Critics warn of economic devastation and the unraveling of America’s urban fabric. What’s clear is that America’s cities stand at a crossroads. The coming months and years will likely reshape urban landscapes in ways both visible and invisible. From the foods we eat to the services we rely on, from the neighborhoods we call home to the very character of our cities, the impacts of this proposed immigration crackdown could be far-reaching and long-lasting. As the nation watches and waits, these cities – vibrant, diverse, and economically vital – find themselves on the front lines of a policy that could redefine what it means to be an American city in the 21st century.

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How Trump’s Deportation Plans Could Reshape Major Cities

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In the wake of Donald Trump’s recent election victory, his ambitious plans for mass deportations have thrust America’s urban centers into the spotlight. As the nation grapples with the potential implications of what Trump calls “the largest deportation operation in American history,” cities across the country are bracing for significant changes that could reshape their economic, social, and cultural landscapes.

The stakes are particularly high for metropolitan areas like New York, Los Angeles, Houston, Dallas, and Miami, which host the largest populations of unauthorized immigrants. These cities, along with other major urban hubs such as Chicago, Washington D.C., and San Francisco, stand at the forefront of a looming transformation that could reverberate throughout the nation.

Economic Tremors

Economists warn that the proposed deportations could send shockwaves through urban economies. Mark Zandi, chief economist at Moody’s, cautions that businesses would face “significant challenges” if a substantial number of immigrants were removed. Industries such as construction, hospitality, and healthcare—pillars of urban economies—could face severe labor shortages.

Joe Brusuelas, chief economist at RSM, emphasizes the potential ripple effects: “The native-born workforce cannot meet current labor demands.” This labor gap could lead to increased wages, potentially rekindling inflation—a concern that looms large over city planners and policymakers alike.

Community Fabric Under Strain

Beyond economic considerations, the social fabric of cities hangs in the balance. Elena, a Nicaraguan immigrant in Houston, voices a fear echoed in immigrant communities across the nation: “I’m scared… This is my home.” The threat of family separations, particularly in mixed-status households, casts a long shadow over urban neighborhoods.

Immigrant advocacy groups like FIEL are mobilizing, advising clients to prepare for “anything that can happen.” This atmosphere of uncertainty could lead to decreased community engagement and cooperation with local authorities, potentially impacting public safety and community cohesion.

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Cities at a Crossroads

As the debate intensifies, cities find themselves at a crossroads. Some, like New York and Los Angeles, have historically positioned themselves as “sanctuary cities,” often at odds with federal immigration enforcement. The impending clash between federal policy and local governance promises to be a defining feature of this new political landscape.

Meanwhile, the logistical challenges of implementing such a massive deportation operation remain daunting. Questions abound regarding detention facilities, transportation networks, and the sheer manpower required to carry out Trump’s vision.

Looking Ahead

As America’s urban centers brace for potential change, the full impact of Trump’s deportation plans remains to be seen. Legal challenges are all but certain, and the resilience of America’s cities will be put to the test.

What is clear is that the coming months and years will be pivotal for urban America. As Jason Miller, a senior Trump adviser, puts it, the plan is to “immediately reinstate” immigration policies from Trump’s first term. For America’s cities, this could mean a period of unprecedented change, challenge, and, potentially, transformation.

As the nation watches and waits, the story of America’s cities in the face of this ambitious deportation plan is just beginning to unfold. The outcome will undoubtedly shape the future of urban life in America for years to come.

Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!

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Donald Trump Wins 2024 USA Election

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Based on the election results, Donald Trump has indeed won the 2024 U.S. presidential election, defeating Vice President Kamala Harris. Here’s an analysis of the key statistics and implications:

Electoral College Victory

Donald Trump has secured the presidency by winning crucial battleground states and flipping some key states that were previously held by Democrats. The final Electoral College tally is still being determined, but Trump has surpassed the 270 electoral votes needed to win.

Battleground State Performance

Trump’s victory was largely secured by winning several critical swing states:

  • Wisconsin: Trump’s win here was pivotal in securing his path to victory.
  • Pennsylvania: This state flipped back to Republican control.
  • Georgia: Another key state that Trump managed to win back.
  • Michigan: Trump successfully flipped this traditionally Democratic stronghold.

While the final popular vote tally is still being calculated, exit polls provide insight into voter priorities:

Congressional Control

The election results extend beyond the presidency:

Media Implications

The outcome of this election could be seen as a challenge to mainstream media narratives for several reasons:

  1. Polling Discrepancies: Many pre-election polls suggested a tight race or even a slight Harris advantage in key states. Trump’s victory, particularly in battleground states, may indicate that polls underestimated his support.
  2. Narrative Shifts: Throughout the campaign, much of the mainstream media focused on Trump’s legal challenges and controversies. His victory suggests that these issues may not have resonated with voters as much as economic and policy concerns.
  3. Voter Priorities: The emphasis on issues like the economy and immigration in voter decision-making may indicate a disconnect between media focus and voter concerns.
  4. Electoral Predictions: Many mainstream outlets were cautious about predicting a Trump victory, even as results began to favor him. This hesitancy could be seen as a reflection of broader media skepticism about Trump’s chances.
  5. Underestimation of Trump’s Base: The results suggest that Trump’s core support remained strong and potentially grew, despite negative coverage in much of the mainstream media.

It’s important to note that while the election outcome may challenge some media narratives, it doesn’t necessarily invalidate all mainstream reporting. The complex factors influencing voter behavior and the challenges of accurate political forecasting remain subjects of ongoing analysis and debate.

As the dust settles on this historic election, both the media and political analysts will likely engage in extensive reflection on the factors that led to Trump’s victory and the implications for future political coverage and analysis.

Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!

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