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House Republicans seek to cut Dodd-Frank regulatory budget

Douglas Shulman

House Republicans are currently seeking cuts in the budgets of Dodd-Frank regulatory agencies, including the Commodity Futures Trading Commission, the Securities and Exchange Commission and the Internal Revenue Service.

The CFTC’s 2013 fiscal year budget would be reduced by $25 million to $180 million, approximately 42 percent less than requested by President Obama, as part of a widespread spending measure approved in the House Appropriations agriculture subcommittee, Bloomberg reports.

“The concern we have is the overreach of Dodd-Frank,” Rep. Jack Kingston (R-Ga.) said, according to Bloomberg.

Chairman Gary Gensler of the CFTC echoed the concerns of those who support increased regulatory funding.

“The result of this bill is to effectively put the interests of Wall Street ahead of those of the American public by significantly underfunding the agency Congress tasked to oversee derivatives,” Gensler said, referring to the CFTC, according to Bloomberg.

The IRS, though not subject to budget cuts, would receive $11.8 billion, the same amount the agency received in the 2012 fiscal year, and the eight percent increase it sought will be denied. The IRS would be responsible for the implementation of a large portion of the healthcare law, though the bill would deny any additional funding for that purpose.

IRS Commissioner Douglas Shulman said that the budget limitations would ultimately make it increasingly difficult for the agency to enforce the tax code and respond to taxpayer inquiries.

“Objectively we are the agency that brings in the money to fund the government, so we’re the one agency that has a very substantial return on investment,” Shulman said, Bloomberg reports. “And so I think, you know, we should be treated differently and I think the president’s budget request reflects that.”

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