White House threatens to veto bill that cuts IRS funding

White House threatens to veto bill that cuts IRS funding
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The Obama administration on Tuesday threatened to veto a House spending bill that would cut funding for the Internal Revenue Service by $236 million.

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The House is expected to consider the fiscal 2017 financial services and general government appropriations bill this week. In addition to the IRS, the legislation provides funding for the Securities and Exchange Commission, the General Services Administration, the Small Business Administration and other agencies.

The Office of Management and Budget (OMB) said that the reductions in IRS funding "exacerbate the damaging reductions inflicted on the IRS since 2010." OMB also said that the bill cuts funding for agencies tasked with implementing Wall Street Reform and "underfunds the Federal Trade Commission's efforts to promote economic competition."

The administration also took issue with policy riders in the bill. These include provisions that curb the IRS's ability to implement ObamaCare, interfere with the Consumer Financial Protection Bureau's proposed rules on payday lending, put new restrictions on the District of Columbia and prevent the Federal Communications Commission from working on its proposed set-top box rule until a study is finished.

"The Administration strongly objects to the inclusion of problematic ideological provisions that are beyond the scope of funding legislation," OMB said.