H.R. 5016, the Financial Services and General Government Appropriations Act for FY15, has many commendable qualities for taxpayers. Unlike many appropriations bills, this legislation reduces spending relative to last year by funding the agencies within its sphere at $566 million below the FY14 enacted level while implementing other critical reforms.
Specifically, H.R. 5016 addresses a host of significant taxpayer concerns at the Internal Revenue Service (IRS). While the legislation pegs funding for the agency at 2008 levels, this is not simply a budget-cutting exercise. Thought has been given to how the IRS should be stewarding its funds, not just how much should be spent, so that important priorities in taxpayer service and modernization are maintained. The bill prohibits the use of funds by the IRS to implement proposed regulations that would significantly restrict the ability of 501(c)(4) organizations from educating citizens and holding elected officials accountable. The bill also contains a number of other important taxpayer protection measures such as prohibiting political targeting by the IRS, a ban on funds for bonuses or awards unless employee conduct and tax compliance is given consideration, and an extensive report on IRS spending. Most significantly, H.R. 5016 blocks the enforcement of the Affordable Care Act’s individual mandate and prevents the transfer of funds from HHS to other agencies to enforce the President’s health care law.
H.R. 5016 addresses the problems at the troubled Consumer Financial Protection Bureau (CFPB) by bringing the agency into the FY16 appropriations process in order to provide much-needed Congressional scrutiny and oversight. The CFPB has been rocked by recent scandals, including the revelation that hundreds of agency officials are overpaid far and above the salaries of members of the Supreme Court, Congress, and even all 50 state governors.
The bill also tackles the ongoing issue of Executive overreach and requires cost-benefit reports on regulations issued pursuant to the Dodd-Frank law. Together, this host of reforms is a good example of Congress properly executing its oversight power through the appropriations process. It is also a significant departure from other status quo appropriations legislation that too often ignores low-hanging opportunities to save taxpayers money, restrain wasteful spending, and stop the out-of-control growth of government.
However, H.R. 5016 is not without its flaws. Taxpayers should be especially concerned about a provision that prevents the U.S. Postal Service (USPS) from transitioning to 5-day mail delivery, saving USPS approximately $2 billion a year. USPS is losing billions annually and faces a retiree health benefit funding crisis. It would be prudent of Congress to permit USPS to implement common-sense cost-saving measures as well as pursue other long-term reforms.
Lawmakers have the opportunity to improve on the underlying legislation. To that end, NTU urges all Representatives to vote “Yes” on the following amendments as well as any other amendments that save taxpayers money and reduce the deficit:
- Blackburn (R-TN) Bailouts Amendment: This amendment would prohibit the use of resources from the Hardest Hit Fund to bail out any state or local government pensions. Taxpayers should not be on the hook for the risk-taking of other municipalities.
- Blackburn (R-TN) FCC Amendment: This amendment would prohibit the Federal Communications Commission from contravening state laws regarding the regulation of municipal broadband. Government entities should not be competing with services available through the private sector.
- Price (R-GA) Taxpayer Confidentiality Amendment: This amendment would prohibit the IRS from violating the confidentiality of tax returns.
Roll call votes on the above amendments to H.R. 5016 will be included in NTU’s annual Rating of Congress.
If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700