Biden Tax Plan Suffers $116B Blow as IRS Revenue Forecast Drops

The Congressional Budget Office estimates that increasing IRS funding by $80 billion over a decade would raise $200 billion in total revenue—more than $100 billion less than the Biden administration previously estimated.

Giving the IRS more resources to audit corporations and the wealthy is among the administration’s proposals to pay for trillions in new spending. The Treasury Department in May predicted the funding increase would bring in an additional $316 billion in tax revenue from 2022 through 2031.

The lower CBO estimate is a blow to the administration, which needs as much revenue as possible to offset ...