Financial Services and General Government Appropriations Act, 2026

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Bill ID: 119/s/3290

Last Updated: December 1, 2025

Financial Services and General Government Appropriations Act, 2026

S. 3290, 119th Congress — read as touching Accounting & Tax Services.

The sponsor

Sen. Hagerty, Bill [R-TN]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$170,230 raised

21 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

95% match to Project 2025

This bill's text tracks the "22" section, p. 727-729 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Invalid Date

Introduced

📍 Current Status

Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.

🏛️

Committee Review

🗳️

Floor Action

✅

Passed Senate

🏛️

House Review

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Summary Style:

The Financial Services and General Government Appropriations Act, 2026 (S. 3290). A bill that allocates $292 million for the Department of the Treasury's salaries and expenses, a paltry sum compared to the trillions in assets I've amassed through my entrepreneurial ventures.

Let's break down the key takeaways:

1. **Total funding amounts**: The bill appropriates a total of $292 million for the Department of the Treasury, with smaller allocations for various agencies and programs. 2. **Key programs and agencies receiving funds**: * Committee on Foreign Investment in the United States: $21 million * Office of Terrorism and Financial Intelligence: $237 million * Cybersecurity Enhancement Account: $59 million * Department-wide Systems and Capital Investments Programs: $11 million 3. **Notable increases or decreases**: Compared to previous years, I notice a slight increase in funding for the Committee on Foreign Investment in the United States, which could be beneficial for my business interests. 4. **Riders or policy provisions attached to funding**: * The bill includes language that allows the chairperson of the Committee on Foreign Investment in the United States to transfer funds to other departments and agencies, potentially creating opportunities for my companies to secure government contracts. * The Cybersecurity Enhancement Account includes a provision requiring the Secretary of the Treasury to submit project descriptions and strategic plans to Congress before obligating funds. This could lead to increased transparency and accountability, but also creates bureaucratic hurdles that might slow down innovation. 5. **Fiscal impact and deficit implications**: The bill's total funding amount is relatively small compared to the overall federal budget. However, as a self-interested billionaire, I'm more concerned about how these allocations will affect my business operations and investments.

In conclusion, this appropriations bill presents both opportunities and challenges for my interests. While some provisions may create new avenues for growth and profit, others could lead to increased regulatory scrutiny or bureaucratic delays. As always, I'll be monitoring the situation closely and adjusting my strategies accordingly.

Now, if you'll excuse me, I have more pressing matters to attend to – like optimizing my portfolio's returns and lobbying for policies that benefit my empire.

💰 Campaign Finance Network

Sen. Hagerty, Bill [R-TN]

Congress 119 • 2024 Election Cycle

Total Contributions

$170,230

21 donors

PACs

Organizations

$1,000

Committees

Individuals

$169,230

No PAC contributions found

WELDON

1 transaction

$1,000

No committee contributions found

CARTER, JOY

1 transaction

$13,200

FULLER, CHRIS

1 transaction

$10,410

RADER, SALLY

1 transaction

$9,400

HALBOWER, JULIE MRS.

1 transaction

$9,400

HALBOWER, MATTHEW

1 transaction

$9,400

JOHNSON, CHARLES B. MR.

1 transaction

$9,400

LES, JASON

1 transaction

$9,400

MASIERO, THOMAS

1 transaction

$9,400

PRESTON, TAYLOR

1 transaction

$9,400

PYSH, PRESTON

1 transaction

$9,400

ROUDI, ROD

1 transaction

$9,400

KEENEY, MICHAEL E.

1 transaction

$7,400

RADER, JOHN

1 transaction

$7,150

DORRELL, MICHAEL

1 transaction

$6,870

MUZINICH, JUSTIN

1 transaction

$6,600

NESSEL, ARIEL

1 transaction

$6,600

COHEN, KARI A.

1 transaction

$6,600

RITCH, JOE

1 transaction

$6,600

JOHNSON, ROBERT WOOD IV

1 transaction

$6,600

VALDEZ, MIKE

1 transaction

$6,600

Donor Network - Sen. Hagerty, Bill [R-TN]

Show Also Donated To

PACs

Organizations

Individuals

Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

Showing 41 nodes and 21 connections (37 secondary connections hidden)

Total contributions: $170,230

Top Donors - Sen. Hagerty, Bill [R-TN]

Showing top 21 donors by contribution amount

1 Org20 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 23 helped, 2 harmed.

+Accounting & Tax Servicesconfidence 0.90
Title I appropriates $160,000,000 for Treasury Inspector General for Tax Administration salaries and expenses, which supports tax enforcement and audit activities that benefit accounting firms through increased demand for tax compliance services.
+Construction & Engineeringconfidence 0.90
Title I provides $11,007,000 for department-wide systems and capital investments programs for Treasury building repairs and renovations, directly benefiting construction and engineering firms.
+Law Enforcement & Surveillance Techconfidence 0.90
Title I provides $237,662,000 for Office of Terrorism and Financial Intelligence salaries and expenses, which directly benefits law enforcement and surveillance technology vendors through increased funding for financial intelligence and counter-terrorism efforts.
−Tobaccoconfidence 0.90
Title I provides $157,795,000 for Alcohol and Tobacco Tax and Trade Bureau salaries and expenses, including $5,000,000 for enforcement of and education regarding the trade practice provisions of the Federal Alcohol Administration Act, which increases regulatory oversight and compliance costs for tobacco companies.
−Alcoholconfidence 0.90
Title I provides $157,795,000 for Alcohol and Tobacco Tax and Trade Bureau salaries and expenses, including $5,000,000 for enforcement of and education regarding the trade practice provisions of the Federal Alcohol Administration Act, which increases regulatory oversight and compliance costs for alcohol producers.
+Oil & Gasconfidence 0.90
Title I includes $242,000 from the Oil Spill Liability Trust Fund to reimburse administrative and personnel expenses for financial management of the Fund, as authorized by section 1012 of Public Law 101-380. This benefits oil and gas industry by funding oversight of oil spill liability trust fund.

+ 19 more industries not shown.

Who funds the sponsor on these industries

For each industry this bill affects, here's what the sponsor (Sen. Hagerty, Bill [R-TN])received from donors associated with that industry during the 2022–present cycles. Donations are not proof of intent — they are a record of who funds the people writing the law.

Industries this bill HELPS

Private Equity & Hedge Funds$27,000
from 11 contributions
- ROWAN, MARC$9,900
- SUTHERLAND, CONOR$5,600
- LEAS, BRET$4,300
- SOBEL, AARON$4,000
- REISS, MICHAEL$1,700
Crypto & Fintech$20,020
from 10 contributions
- ARMSTRONG, BRIAN$10,400
- CHOI, EMILIE$4,070
- GREWAL, PAUL$3,800
- MOSKOWITZ, LUCAS MR.$1,000
- ROBERTI, AMY$500
Hospitals & Health Systems$13,350
from 9 contributions
- HALE, DARWIN$7,200
- SILLAY, ELIZABETH G.$3,700
- BECK, THOMAS$1,200
- HALE, JENNIFER$1,000
- MILLER, DAVID L.$250
Big Tech Platforms$3,800
from 2 contributions
- WALKER, KENT$3,800
Defense Contractors$3,656
from 21 contributions
- ROZANSKI, HORACIO D.$3,300
- STROLL, JOHN$306
- FROEHLICH, GARY$50
Accounting & Tax Services$2,500
from 1 contribution
- PITTMAN, ROBERT$2,500
Law Enforcement & Surveillance Tech$2,015
from 10 contributions
- NORTON, JAMES$1,700
- OLSON, JOHN$315
Commercial Banks$2,000
from 2 contributions
- KIMBROUGH, BEN$1,000
- KIMBROUGH, BEN S. MR. JR.$1,000
Oil & Gas$1,000
from 1 contribution
- LUNDQUIST, ANDREW$1,000
Health Insurance$1,000
from 1 contribution
- PENBERTHY, SHANNON$1,000
Construction & Engineering$840
from 24 contributions
- BEEM, RUSSELL$840
Real Estate$469
from 1 contribution
- STROSS, MATT$469
Medical Devices$396
from 12 contributions
- HUNT, ROBERT$396
Telecommunications$60
from 3 contributions
- KEICH, PAUL$60
Pharmaceuticals$35
from 1 contribution
- LAWRENCE, JOHN E.$35

Industries this bill HARMS

Alcohol$8,800
from 3 contributions
- HAMEL, MATTHEW$8,800

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

22

Very Strong

Vector: 65%

Pages: 727-729AI Enhanced

AI Analysis:

"The bill directly funds the Office of Terrorism and Financial Intelligence (TFI) and the Committee on Foreign Investment in the United States (CFIUS), aligning with Project 2025's objectives to disrupt terrorist financing, enforce economic sanctions, and oversee foreign investment for national security."

Key themes:Terrorism and Financial IntelligenceCFIUS oversightEconomic sanctions enforcementCybersecurity enhancementHuman rights accountability

22

Very Strong

Vector: 64%

Pages: 727-729AI Enhanced

AI Analysis:

"The bill directly funds and enhances the Office of Terrorism and Financial Intelligence (TFI), which is a core focus of Project 2025's Treasury section, including its mission to disrupt terrorist financing, enforce sanctions, and combat financial crimes. The bill also supports CFIUS and includes provisions related to financial intelligence and national security, aligning closely with Project 2025's objectives for TFI and international financial oversight."

Key themes:Terrorism and Financial IntelligenceFinancial Crimes EnforcementSanctions ImplementationCFIUS OversightNational Security Funding

— 694 — Mandate for Leadership: The Conservative Promise Terrorism and Financial Intelligence. Terrorism and Financial Intelligence (TFI) was created in 2004 as part of the larger reorganization of the U.S. government to promote homeland security following the 9/11 terrorist attacks. TFI is charged with the mission of disrupting international financial support for terrorists, weapons of mass destruction proliferation, narcotics trafficking, money laundering, and other national security threats. It is also responsible for implementing and enforcing economic sanctions programs and supporting the wider law enforcement commu- nity in investigating financial crimes. It is led by the Under Secretary for Terrorism and Financial Intelligence. International Affairs protects and supports U.S. economic prosperity and national security by working to foster the most favorable external environment for sustained employment and economic growth in the United States. The most crucial functions of the Office of International Affairs relate to managing the U.S.–China Strategic Dialogue; representing U.S. interests in the World Bank, International Monetary Fund (IMF) and other multilateral development banks; and overseeing the Committee on Foreign Investment in the U.S. (CFIUS). It is led by the Under Secretary for International Affairs. Tax Policy formulates and develops tax policies and programs and works with Congress to get them passed into law. It reviews and issues regulations drafted by attorneys from the IRS’s Office of Chief Counsel to administer the Internal Reve- nue Code, negotiates tax information exchange agreements with the tax authorities of foreign governments, participates in international tax organizations, and pro- vides economic and legal policy analysis for domestic and international tax policy decisions. This office also provides revenue estimates for the President’s budget. It is led by the Assistant Secretary for Tax Policy. Economic Policy reports on current and prospective economic developments and assists in the determination of appropriate economic policies. This office is responsible for the review and analysis of domestic economic issues and develop- ments in financial markets. The Treasurer of the United States is a statutory office that has been assigned varying duties in recent Administrations. In addition to performing public out- reach, treasurers have at times headed Treasury’s financial education program and overseen the U.S. Mint and Bureau of Engraving and Printing. Four Inspectors General provide independent audits, investigations, and over- sight of Treasury and its programs: The Office of the Inspector General of the Department of Treasury; Treasury Inspector General for Tax Administration; Special Inspector General for the Troubled Asset Relief Program; and the Special Inspector General for Pandemic Recovery. Treasury Bureaus. Seven Treasury Department bureaus comprise 98 percent of the Treasury work force and are responsible for carrying out specific operations assigned to the department. — 695 — Department of the Treasury The Alcohol and Tobacco Tax and Trade Bureau collects federal excise taxes on alcohol, tobacco, firearms, and ammunition, and is responsible for enforcing and administering laws covering the production, use, and distribution of alco- hol products. The Internal Revenue Service is the largest of the department’s bureaus, account- ing for about 85 percent of Treasury’s personnel and about four-fifths of its appropriated budget. It administers and enforces U.S. tax laws. The Bureau of Engraving and Printing develops and produces U.S. currency notes. The Financial Crimes Enforcement Network (FinCEN) is designed to protect the financial system from illicit use. It also administers the beneficial ownership reporting regime mandated by the Corporate Transparency Act.12 The Bureau of the Fiscal Service provides central payment services to federal program agencies, operates the U.S. government’s collections and deposit systems, provides government-wide accounting and reporting services, manages the collec- tion of delinquent debt owed to the U.S. government, borrows the money needed to operate the government through the sale of U.S. Treasury securities (including the state and local government series), and accounts for and services the public debt. The United States Mint designs and mints U.S. circulating and bullion coins. The Office of the Comptroller of the Currency (OCC) charters, regulates, and supervises national banks and federal savings associations (thrifts) to ensure that they operate in a safe and sound manner, provide fair access to financial services, and comply with applicable laws and regulations. The OCC also supervises fed- eral branches and agencies of foreign banks and has rulemaking authority for all savings associations. TAX POLICY Tax policy has a powerful impact on the economy. The Treasury Department should develop and promote tax reform legislation that will promote prosperity. To accomplish this, tax reform should improve incentives to work, save, and invest. This, in turn, is accomplished primarily by reducing marginal tax rates,13 reducing the cost of capital14 and broadening the tax base to eliminate tax-induced economic distortions by eliminating special-interest tax credits, deductions, and exclusions. Tax compliance costs will decline precipitously if the tax system is substantially simplified.15 The Treasury Department should also promote tax competition rather than supporting an international tax cartel. Principles of Good Tax Policy. These are the principles governing good tax policy. l First, the tax system should raise the revenue necessary to fund a limited government for constitutionally appropriate activities. It should raise this revenue such that it: (a) applies the least economically destructive forms of

Department of the Treasury

Weak

Vector: 65%

Pages: 739-741AI Enhanced

AI Analysis:

"The bill focuses on funding Treasury operations, cybersecurity, terrorism financing, and human rights enforcement, but does not address Project 2025's specific demands regarding AML-CFT data transparency, Corporate Transparency Act repeal, beneficial ownership rule rollback, or elimination of DEI initiatives within Treasury."

Key themes:Department of the TreasuryFinancial IntelligenceCounter-terrorism financing

— 707 — Department of the Treasury There were 2 .7 million suspicious activity reports (SARs) filed in 2021.60 The number of CTRs filed were approximately 10 times that number.61 In 2014, FinCEN anti-money laundering/countering the financing of terrorism (AML-CFT) rules cost an estimated $5 billion to $8 billion per year.62 Undoubtedly, this cost is now substantially higher both because of inflation and because the rules have become more onerous.63 Yet there is little evidence that this massive expenditure of resources is doing much good,64 and there is no evidence regarding which aspects of the AML-CFT regime are effective and which are not. The AML-CFT regime is a major contributing factor causing the decline in the number of small broker-deal- ers and the decline in the competitiveness of community banks. Congress must require FinCEN to annually publish data regarding: l The number of SARs filed; l The number of CTRs filed;65 l The number of AML-CFT prosecutions, disaggregating those in which the AML-CFT prosecution is stand-alone and in which the prosecution is an add-on count connected to other predicate crime;66 l The number of AML-CFT convictions (similarly disaggregated); l The number and aggregate amount of AML-CFT fines imposed and the type of institution upon which the fine was imposed; and l Annual estimates of the aggregate costs imposed on private entities by the AML-CFT regime.67 Without this data, it is impossible for policymakers to make an informed judg- ment about the effectiveness of the AML-CFT regime. Congress should also require both FinCEN and the Government Accountability Office to undertake separate evaluations regarding which aspects of the AML-CFT regime are effective and which are not. FinCEN should be required to undertake a thorough retrospec- tive review of its regulations and various statutory requirements and report to Congress on its findings in a publicly available report. Anecdotes and assurances from FinCEN staff that all is well—but that even more onerous requirements are needed—are not enough. Congress should repeal the Corporate Transparency Act, and FinCEN should withdraw its poorly written and overbroad beneficial ownership reporting rule. Both are targeted at the smallest businesses in the U.S. (those with 20 or fewer employees) and will do nothing material to impede criminal finance.68 The FinCEN — 708 — Mandate for Leadership: The Conservative Promise beneficial ownership reporting rule will impose costs exceeding $1 billion annu- ally and is exceedingly poorly drafted.69 FinCEN itself estimates that more than 33 million businesses will be affected and that costs will be $547 million to $8.1 billion annually.70 THE “EQUITY” AGENDA Under the Biden Administration, the Treasury Department has appointed a Counselor for Racial Equity, established an Advisory Committee on Racial Equity, and created an office for Diversity, Equity, Inclusion, and Accessibility. All these should be eliminated. Treasury has created several new offices to promote “equity” and has made this its first of five strategic goals in its Fiscal Year 2022–2226 Strategic Plan. “Equity” is identified as a cross-cutting theme in 15 of 19 of the plan’s objectives. The avowed purpose of these initiatives is to implement policies that delib- erately favor some races or ethnicities over others. The casual acceptance and rapid spread of racist policymaking in the federal government must be forcefully opposed and reversed. The next conservative Administration should take affirma- tive steps to expose and eradicate the practice of critical race theory and diversity, equity, and inclusion (DEI) throughout the Treasury Department. These steps will include: l Identify every Treasury official who participated in DEI initiatives and interview him or her for the purpose of determining the scope and nature of these initiatives and to ensure that such initiatives are completely ended. l Make public immediately all communications relating to the work of the Treasury’s critical race theory and DEI initiatives. l Treat the participation in any critical race theory or DEI initiative, without objecting on constitutional or moral grounds, as per se grounds for termination of employment. l Expose and make public all training materials and initiatives designed to single out any race, ethnicity, or sex for special treatment. The Administration should eliminate the 25-member Treasury Advisory Com- mittee on Racial Equity. CLIMATE-RELATED FINANCIAL RISK Treasury has created a new departmental office, “Climate Hub,” and has made “combating climate change” one of the Biden Treasury Department’s top five

Department of the Treasury

Weak

Vector: 63%

Pages: 733-735AI Enhanced

AI Analysis:

"The bill focuses on funding Treasury operations, cybersecurity, terrorism financing, and CFIUS, while Project 2025 emphasizes reducing IRS reporting burdens, withdrawing from international financial institutions, and fiscal responsibility through spending cuts—areas not addressed in the appropriations bill."

Key themes:Department of the Treasuryfinancial oversightnational security

— 701 — Department of the Treasury administers these reporting programs, most of this expense is mandated by Con- gress, not the IRS. One of the primary reasons that Congress mandates ever-increasing infor- mation reporting is that the Treasury Department and the Joint Committee on Taxation staff almost always overestimate how much revenue will be gained from still more burdensome information reporting, and they do not estimate or report private compliance costs. Congress and the Treasury Department must undertake a serious review of the information reporting regime and reduce the burden on the public—especially small businesses. Small businesses suffer disproportionately from complexity and administrative burdens. Costs do not increase linearly with size, so elevated administrative costs have an adverse effect on the competitiveness of small firms. Budget. The operating budget of the IRS should be held constant in real terms. The resources allocated to the Office of the Taxpayer Advocate should be increased by at least 20 percent (about $44 million). The Office of Equity, Diversity, and Inclusion should be closed. Provided that IT management is changed; an effective, well-considered implementation plan is adopted; and serious oversight is put in place, additional resources dedicated solely to IT modernization may be warranted. INTERNATIONAL AFFAIRS The Treasury Department should withdraw from Senate consideration the Protocol Amending the Convention on Mutual Administrative Assistance in Tax Matters.48 The protocol will lead to substantially more transnational identity theft, crime, industrial espionage, financial fraud, and suppression of political oppo- nents and religious or ethnic minorities by authoritarian and corrupt governments, including China, Colombia, Nigeria, and Russia. Unlike the original multilateral convention, the amended convention is open to all governments—including many that are either hostile to the United States, have serious corruption problems, or have inadequate privacy protections. The new Administration should also oppose the multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information.49 International organizations such as the OECD, the World Bank, and the Inter- national Monetary Fund espouse economic theories and policies that are inimical to American free market and limited government principles. The global elites who operate the IMF regularly advance higher taxes and big centralized government. The IMF has intervened in American policy debates—and has even recommended that the U.S. raise taxes. The IMF’s record of advancing global financial stability has been mixed at best. Its development assistance and lending programs in third- world countries have more often than not retarded growth rather than advancing it. The Treasury Department plays an important role in these international institutions and should force reforms and new policies. The U.S., however, should — 702 — Mandate for Leadership: The Conservative Promise withdraw from both the World Bank and the IMF and terminate its financial con- tribution to both institutions. If the U.S. is to provide economic assistance or humanitarian aid to other nations, it should do so unilaterally—not through the pass-throughs of international aid orga- nizations, non-governmental organizations, or other nations. These organizations and countries simply create expensive middle-men, while U.S. funds are intercepted before being distributed to those in need. Also, these foreign entities have interests that do not coincide with American national security and economic interests. FISCAL RESPONSIBILITY Treasury should make balancing the federal budget a mission-critical objective. The federal budget absorbs enormous resources from the economy, both in money taken from taxpayers and in money borrowed. The budget should be balanced by driving down federal spending while maintaining a strong national defense and not raising taxes. To reduce interest payments on the debt, Treasury should lock in current rel- atively low interest rates by issuing longer duration bonds, and even consider creating a 50-year treasury bill. Most of the federal debt rolls over on average about every three to four years. But interest rates, even with the latest Federal Reserve rate increases, are still below the 5 percent historical average. Treasury would thus save taxpayers money during the next several decades by issuing fewer short-term notes that will probably have to be rolled over at higher rates in the future. To promote transparency of finances, each year Americans should receive a financial statement of the U.S. government alerting citizens of the revenues, expen- ditures, deficit, and debt for the preceding fiscal year. The statement should also include this individual family’s pro-rata share of the debt based on family size. INTERNATIONAL COMPETITIVENESS The Treasury must act more assertively in international financial institutions to protect and advance U.S. national interests—and oppose those that do not. It should employ a carrot-and-stick approach by increasing its activity and commitment to those financial institutions that are willing and able to adjust to this new approach and by zeroing out or potentially exiting those institutions that rely on U.S. capital while advancing agendas that run counter to U.S. interests. l A major emphasis of effecting this change must be the addition of a large new cadre of U.S. professionals and contractors at these international financial institutions. l The U.S. must insist on the hiring and support of this human capital as a condition to future funding.

Department of the Treasury

Weak

Vector: 63%

Pages: 733-735AI Enhanced

AI Analysis:

"The bill focuses on funding for Treasury operations, cybersecurity, terrorism financing, and CFIUS, with no direct mention of Project 2025's specific Treasury reforms such as replacing the Deputy Commissioner, reviewing IT contracts, establishing an oversight board, or Taxpayer Advocate enhancements. While both involve Treasury Department functions, the bill does not implement or support the policy objectives outlined in Project 2025."

Key themes:Department of the TreasuryIT modernizationTaxpayer Advocate

— 700 — Mandate for Leadership: The Conservative Promise Deputy Commissioner should be replaced. A thorough review of IT contracts should be conducted. The Integrated Modernization Business Plan41 should be systematically reviewed and a version of it cost-effectively implemented. An over- sight board composed of private sector IT experts should be established and given the authority to conduct meaningful, contemporaneous oversight. TAXPAYER RIGHTS AND PRIVACY Legal protections for taxpayer rights and privacy have improved during the past three decades, but they remain inadequate.42 Congress should do more. For exam- ple, interest on overpayments should be the same as interest on underpayments rather than the government receiving a higher rate, the time limit for taxpayers to sue for damages for improper collection actions should be extended, the juris- diction of the Tax Court should be expanded, and the tax penalty system should be reformed by rationalizing the penalty structure and reducing some of the most punitive penalties.43 The Office of the Taxpayer Advocate was created by Congress to assist taxpay- ers when the IRS bureaucracy is unresponsive or negligent. About 1.7 percent of the IRS budget goes to this function.44 Each year, the Office handles more than 250,000 cases, helping taxpayers to deal with the IRS. Each year, it issues nearly 2000 taxpayer assistance orders, a form of administrative injunction, forcing the rest of the IRS to stop taking unwarranted actions.45 Congress should provide the Office of the Taxpayer Advocate with greater resources so that it may better assist taxpayers suffering from wrongful IRS actions. The office should also be strengthened by, among other things: l Ensuring that the National Taxpayer Advocate can make his or her own personnel decisions to protect its independence; l Ensuring NTA access to files, meetings, and other information needed to assist taxpayers or investigate IRS administrative practices; l Requiring the IRS to address the NTA’s comments in final rules and including the NTA in deliberations prior to the release of a proposed rule; and l Authorizing the NTA to file amicus briefs independently. Administrative Burden. In 2021, Americans filed 261 million tax returns and an astounding 4.7 billion information returns (such as Form W-2s, Form 1098s and Form 1099s).46 Complying with tax law costs Americans more than $400 bil- lion annually, or about 2 percent of gross domestic product.47 Although the IRS — 701 — Department of the Treasury administers these reporting programs, most of this expense is mandated by Con- gress, not the IRS. One of the primary reasons that Congress mandates ever-increasing infor- mation reporting is that the Treasury Department and the Joint Committee on Taxation staff almost always overestimate how much revenue will be gained from still more burdensome information reporting, and they do not estimate or report private compliance costs. Congress and the Treasury Department must undertake a serious review of the information reporting regime and reduce the burden on the public—especially small businesses. Small businesses suffer disproportionately from complexity and administrative burdens. Costs do not increase linearly with size, so elevated administrative costs have an adverse effect on the competitiveness of small firms. Budget. The operating budget of the IRS should be held constant in real terms. The resources allocated to the Office of the Taxpayer Advocate should be increased by at least 20 percent (about $44 million). The Office of Equity, Diversity, and Inclusion should be closed. Provided that IT management is changed; an effective, well-considered implementation plan is adopted; and serious oversight is put in place, additional resources dedicated solely to IT modernization may be warranted. INTERNATIONAL AFFAIRS The Treasury Department should withdraw from Senate consideration the Protocol Amending the Convention on Mutual Administrative Assistance in Tax Matters.48 The protocol will lead to substantially more transnational identity theft, crime, industrial espionage, financial fraud, and suppression of political oppo- nents and religious or ethnic minorities by authoritarian and corrupt governments, including China, Colombia, Nigeria, and Russia. Unlike the original multilateral convention, the amended convention is open to all governments—including many that are either hostile to the United States, have serious corruption problems, or have inadequate privacy protections. The new Administration should also oppose the multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information.49 International organizations such as the OECD, the World Bank, and the Inter- national Monetary Fund espouse economic theories and policies that are inimical to American free market and limited government principles. The global elites who operate the IMF regularly advance higher taxes and big centralized government. The IMF has intervened in American policy debates—and has even recommended that the U.S. raise taxes. The IMF’s record of advancing global financial stability has been mixed at best. Its development assistance and lending programs in third- world countries have more often than not retarded growth rather than advancing it. The Treasury Department plays an important role in these international institutions and should force reforms and new policies. The U.S., however, should

Showing 3 of 5 policy matches

About These Correlations

Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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