Under the Biden administration Democrats dangerously weaponized government, using agencies like the Internal Revue Service (IRS) and the murky regulatory process as political tools to target taxpayers they deem undesirable. The institutions that Americans entrusted with their taxpayer dollars have been turned against them, manipulated as instruments of political power rather than as unbiased entities meant to serve the public and follow the law.

Lately, the IRS has found itself flush with cash thanks to a partisan law known as the Inflation Reduction Act that allocated a staggering $80 billion to supercharge tax collections and modernize its systems. But instead of focusing on improving existing services as intended, the IRS got greedy, inappropriately using their oversight authority to think of new ways to hound and penalize businesses they don’t agree with.

At issue is a new regulation issued by the Treasury Department and the IRS days before Biden left office granting unlawful powers to undermine business partnerships. The regulation targets “basis-shifting”—a long-established practice in the tax code that allows partnerships to adjust the value of their assets during a transaction or transfer.

By unilaterally re-interpretating the tax code, the IRS can now impose unnecessary audits that complicate an already complex tax system and threaten steep penalties for noncompliance. This is more government red tape for Texas businesses that discourages future investment on our communities.

The most glaring issue with this regulation is its clear unconstitutionality, as the IRS lacks the authority to enforce the reporting requirements or conduct partnership audits that put private data at risk. The National Association of Manufacturers (NAM) has debunked the IRS’ legal justifications, pointing out how the agency flagrantly violated the law by introducing these requirements.

To put it simply, the consequences of these actions are far-reaching. Karen Kerrigan, CEO of the Small Business & Entrepreneurship Council (SBE Council) said, “…local economies, jobs, and U.S. competitiveness are at risk. The fallout goes further as these costs will be passed down to consumers, which is certainly not needed right now given volatile inflation and high prices for consumer goods and services.”

This regulation is a prime example of tax unfairness, as the IRS seeks to publicly label law-abiding taxpayers that utilize basis-shifting as ‘evil’, which reveals unsettling bias in government institutions and erodes the public’s trust.

Thankfully, with a new administration committed to eliminating wasteful government spending, there is now a window of opportunity to put America back on track and focus on policies that empower businesses and foster economic growth.

Those who represent Texans in Washington, including Senator John Cornyn and Representatives Jodey Arrington, Beth Van Duyne, and Roger Williams must continue standing up to flagrant government overreach and defend the interests of hardworking Americans.

These legislators must urgently work with President Trump and new leadership at the Treasury Department and IRS to take swift action to rescind the ‘basis-shifting’ rule and dismantle the rogue enforcement unit that has been weaponized against our business community.

Only by doing so can we protect the economic freedom that fuels American innovation and prosperity not only in Texas but across the country. It’s long overdue to protect businesses from excessive government interference and ensure that taxpayers are treated fairly under the law.

Harvey Hilderbran represented the Texas Hill Country in the Texas House from 1989-2015 and is a former Chairman of the Ways and Means Committee.