At a hearing of the House Small Business Committee, Koskinen urged lawmakers to approve President Obama’s 2017 budget for the IRS, which increases funding for the agency.
“The IRS’s funding was cut significantly for the five years from 2011 to 2015, and those reductions have taken a toll on both taxpayer service and enforcement programs,” the commissioner said. “I continue to urge Congress to approve the president’s fiscal year 2017 budget for the IRS, which requests a base increase of $530 million over the fiscal year 2016 enacted level.”
Rep. Blaine Luetkemeyer (R., Mo.) asked Koskinen whether a flat tax policy would save the agency money.
“There’s a lot of discussion with regards to the flat tax,” Luetkemeyer said. “I realize that is a policy decision, but from the standpoint of the IRS being able to implement a flat tax, how much would it save you from people being hired and the money being expended because of the simplification of that?”
“Would you estimate that would help your budget problem here that we keep addressing?” the congressman asked.
“I don’t think I have a number for you but clearly if you had a two-page form or a one-page form where you got rid of all the deductions and everything else and people just paid in effect either a flat tax or a graduated flat tax it would be simpler for taxpayers and it would be much simpler for us,” Koskinen said.
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