On August 16, 2022, Public Law 117-169, the 2022 reconciliation act, was enacted. As a result of increases in outlays for the Internal Revenue Service (IRS) stemming from the act, the Congressional Budget Office estimates that revenues will increase by $180.4 billion over the 2022–2031 period. CBO projects that some of the increased revenues will be collected from taxpayers with income less than $400,000; the amount will be a small fraction of the total increase.
This letter provides additional information about the basis for CBO’s analysis and answers several questions that Congressmen Kevin Brady and Jason Smith asked. CBO will publish an updated cost estimate for the entire 2022 reconciliation act in the first week of September and is providing this information about the IRS’s enforcement now in response to interest expressed by Congressmen Brady and Smith and other Members.