Economics/Trade

The Senate Finance Committee will begin to examine how the Internal Revenue Service (IRS) determines tax-exempt status.

Lawmakers started calling for investigations after reports that the IRS targeted politically conservative groups.

Sen. John Cornyn (R-Texas) introduced a bill Thursday that would prohibit the Treasury Secretary and the Internal Revenue Service (IRS) from enforcing ObamaCare.

Cornyn introduced the Keep the IRS Off Your Health Care Act, S. 983, on Thursday. Lawmakers have been calling for investigations and limitations on the IRS since it admitted to applying extra scrutiny to conservative groups seeking tax-exempt status.

“I do not support ObamaCare, and after the events of last week, I cannot support giving the IRS any more responsibility or taxpayer dollars to implement a broken law,” Cornyn said.

Sen. Marco Rubio (R-Fla.) said he thinks President Obama made a mistake Thursday by not saying directly that no one in the White House was aware of the scandal at the Internal Revenue Service (IRS).

“I have tremendous respect for the office of the president,” Rubio said moments after Obama held a press conference. “[But] I think the president today potentially made a mistake in a comment he made.”

Senate Minority Leader Mitch McConnell (R-Ky.) said Republicans on the Senate Finance Committee demanded that the Treasury Inspector General investigate the “inappropriate harassment of conservative groups” by the Internal Revenue Service (IRS).

“No one should be intimidated by the government into shutting up as part of our political process,” McConnell said Thursday. “And that’s why the Republican members of the Finance Committee are sending a letter today to Treasury’s Inspector General for Tax Administration requesting investigation into this very issue. Because, without this sort of inquiry, we may never have confirmed the inappropriate harassment of conservative groups that was going on at the IRS for two years.”

Senate Budget Committee Chairwoman Patty Murray (D-Wash.) said House Republicans are “debating what they will write on a ransom note” instead of agreeing to go to conference on the budget.

“House Republican’s are meeting to discuss what they will ask for in exchange for not tanking the economy,” Murray said on the Senate floor Wednesday. “They are debating what they will write on a ransom note.”

Sen. Marco Rubio (R-Fla.) said the IRS scandal is a result of a culture of “intimidation” and “hardball politics” within the Obama administration.

“This culture of intimidation and hardball politics, we cannot stand for this,” Rubio said on the Senate floor Wednesday.

Senate Majority Leader Harry Reid (D-Nev.) said Republicans are blocking the Senate and House from forming a conference committee on the budget for the “nakedly partisan reason” of creating another economic crisis.

“It’s obvious [Republicans] are delaying [the budget] for one nakedly partisan reason: they hope to put off a compromise long enough to create another manufactured crisis, as the nation once again approaches the debt limit,” Reid said on the Senate floor Tuesday.

Senate Majority Leader Harry Reid (D-Nev.) said the House Republican plan to prioritize federal debt is “totally irresponsible” and would lead to a government default.

“If we pay China but not our troops serving overseas, we're in default,” Reid said Monday. “The Republican approach with default is totally irresponsible. Republicans know this risky measure is a nonstarter in the Senate, and even if it could pass the Senate, which it won't, President Obama would veto it.”

Calling allegations "troubling," Reid says Senate will act if IG report finds need for more investigation.

Republicans will wait until after the Memorial Day recess to begin the process of passing annual appropriations bills for fiscal 2014.

"The majority leader announced we'll begin the process of funding our government in June through an open appropriation," Rep. Kevin Brady (R-Texas) said on the House floor Thursday.