The accomplishments in President Donald Trump’s first few weeks of his second term read like a checklist of his promises from the campaign trail – especially when it comes to eliminating government overreach and paring back the bloated federal bureaucracy that ballooned under the Biden administration.
The work of the Department of Government Efficiency (DOGE), at the direction of the president, is key to restoring Americans’ faith in government. One agency’s actions – the Internal Revenue Service (IRS) – were of particular concern to me under control Democratic control given the targeting of American taxpayers. With President Trump in power, a lingering Biden era regulation and investigation unit deserves a closer examination from DOGE.
What was once an unbiased institution for tax collection was utilized as a tool by the Biden administration and career liberal staff to unfairly audit middle-income filers. As an example, in 2023, 63 percent of new audits were aimed at taxpayers with an annual income of less than $200,000.
Job creating business owners were another target of the previous administration especially in the waning days of its power. The IRS modified the tax rules governing business partnerships despite having no legal authority to do so without approval from Congress. By altering how the IRS views commonplace and lawful basis shifting transactions used by partnerships, businesses are now subject to burdensome and duplicative reporting requirements, penalties, and increased audit scrutiny.
On top of onerous and duplicative reporting, the Biden IRS established a special investigations unit staffed by career IRS lawyers tasked with scrutinizing business partnerships, further straining these entities which drive economic growth in our country. This is not just an issue for businesses in Pennsylvania; the impact, if this regulation and investigations unit remain in place, will be felt across the entire nation.
Karen Kerrigan, CEO of the Small Business & Entrepreneurship Council (SBE Council) said it best, “…local economies, jobs, and U.S. competitiveness are at risk. The fallout goes further as these costs will be passed down to consumers, which is certainly not needed right now given volatile inflation and high prices for consumer goods and services.”
What makes this action more concerning is its unconstitutionality. The legal authority for the IRS to establish a regulatory unit of this magnitude was never granted by Congress, making the creation of this unit a dangerous overreach of executive power. Rather than focusing on excessive regulation, the IRS should prioritize more pressing issues such as addressing the massive backlog of tax refunds, modernizing their systems, and implementing cybersecurity measures to protect taxpayer information.
During my time as Chester County Register of Wills, I prioritized bringing technological advancements to our office and finding ways to increase efficiencies and reduce costs for our local government. These are the types of goals our federal agencies should be aiming for on behalf of American taxpayers across all levels of government, not burdening the individuals and organizations focused on spurring economic growth to Make America Great Again.
Americans deserve a responsive government that acts in their best interest, and the IRS should be committed to fulfilling its fundamental mission of providing efficient services and support for taxpayers. Voters sent a strong message in November by electing leaders who are committed to reining in government excess, streamlining operations, and ensuring taxpayer dollars are spent responsibly.
Pennsylvanians are fortunate to have leaders fighting on our behalf like Rep. Lloyd Smucker. Smucker (R-Lancaster) was an outspoken critic of Biden’s poorly run IRS sharing that he constantly heard “from constituents across Pennsylvania’s 11th District, that the IRS is failing in its customer service mission. An effective government is a responsive government.
The IRS needs to make significant efforts to improve its responsiveness to its customers—the American taxpayer.” Leaders like Rep. Smucker must continue to fight for the interests of their constituents, pushing back against overregulation and ensuring policies that foster economic growth and protect taxpayers.
To get this done, they must work alongside pro-business leaders like President Trump to ensure a future where American businesses can thrive and not be hamstrung by bureaucratic red tape. Rescinding this unlawful rule targeting business partnerships and eliminating the investigation unit should be a top priority for President Trump and DOGE.
