IRS braces for $500bn drop in revenue as taxpayers skip filings in wake of DOGE cuts

Submitted ⁨⁨1⁩ ⁨week⁩ ago⁩ by ⁨MicroWave@lemmy.world⁩ to ⁨economics@lemmy.world⁩

https://www.independent.co.uk/news/world/americas/us-politics/irs-doge-cuts-tax-filing-b2719911.html

Summary

The IRS anticipates a $500 billion revenue loss as taxpayers increasingly skip filings following cuts from Elon Musk under Trump.

The IRS, set to downsize by 20% by May 15, has seen increased online chatter about avoiding taxes, with individuals betting auditors won’t scrutinize accounts.

Experts warned that workforce reductions could cripple the agency’s efficiency.

Treasury officials predict a 10% drop in tax receipts compared to 2024.

Former IRS commissioners have criticized the cuts, warning of dysfunction and reduced collection capacity.

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Comments

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jjjalljs@ttrpg.network ⁨1⁩ ⁨week⁩ ago
things like this are why anyone saying the right wing is fiscally responsible should be laughed out of the room

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- WraithGear@lemmy.world ⁨1⁩ ⁨week⁩ ago
  They have never done anything since Regan that would point to them being fiscally responsible. They have always bestowed against the welfare of the future
  
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- MutilationWave@lemmy.dbzer0.com ⁨1⁩ ⁨week⁩ ago
  “Republicans are fiscally responsible” = “You eat seven spiders every year in your sleep”
  
  It’s just something people will keep repeating until the end of time because they don’t have anything important to say.
  
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  - CileTheSane@lemmy.ca ⁨1⁩ ⁨week⁩ ago
    Fiscally Responsible George, who does 86400 fiscally responsibles a day, is an outlier and should not have been included in the data set.
    
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pezhore@infosec.pub ⁨1⁩ ⁨week⁩ ago
I filed mine mostly because I knew I was going to be getting a refund. I wanted to make sure that I got that money before the IRS was completely fucked. This may be the last year that I purposely overestimate my tax burden (e.g. paying more in taxes than I ideally should).

In the past, people would say that you’re giving the government an interest-free loan - I didn’t really care about that because I knew I would get that money back later. Now? I’m not so sure.

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- RagingRobot@lemmy.world ⁨1⁩ ⁨week⁩ ago
  Yeah I usually do the same just to be sure I will never owe anything now I’ll probably change it so I always owe
  
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  - MutilationWave@lemmy.dbzer0.com ⁨1⁩ ⁨week⁩ ago
    This is the right way to go unless you’re totally incompetent with money or a gambling addict.
    
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- douglasg14b@lemmy.world ⁨1⁩ ⁨week⁩ ago
  If you are an individual and not a business then the IRS already knows what you have been paid as long as you have been paid by a business.
  
  It’s already reported.
  
  You can’t dodge your taxes unless you are wealthy or a large corporation, us peons are already under the thumb.
  
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aeternum@lemmy.blahaj.zone ⁨1⁩ ⁨week⁩ ago
surely this will lower the price of eggs, right? right?

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ArmoredThirteen@lemmy.zip ⁨1⁩ ⁨week⁩ ago
The tax person I go to every year said everyone is filing for a extensions right now “to see what happens”

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Wilco@lemm.ee ⁨1⁩ ⁨week⁩ ago
Is everyone thinking they will “just do a tax fraud”?

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- BigDanishGuy@sh.itjust.works ⁨1⁩ ⁨week⁩ ago
  Well, which of the laid off IRS employees are going to find out?
  
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- Glytch@lemmy.world ⁨1⁩ ⁨week⁩ ago
  Some are thinking “I don’t want to fund what Elon is doing so let them come and take it”
  
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- FilthyShrooms@lemmy.world ⁨1⁩ ⁨week⁩ ago
  They can’t catch all of us, right?
  
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- neon_nova@lemmy.dbzer0.com ⁨1⁩ ⁨week⁩ ago
  Well a lot of people thought they could do the Chase infinite money glitch… So, who knows.
  
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wampus@lemmy.ca ⁨1⁩ ⁨week⁩ ago
I seem to recall hearing Trump officials/project2025 sorts say they wanted to do away with income tax, replace it with tariffs. So, I mean, the IRS falling apart and not being able to collect income tax is sorta… on the roadmap, isnt it? Like issuing this warning is prolly just gonna be taken as a goal milestone achieved on the plan… ??

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- RememberTheApollo_@lemmy.world ⁨1⁩ ⁨week⁩ ago
  Replace with tariffs? This clown has no idea how anything works.
  
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  - UnderpantsWeevil@lemmy.world ⁨1⁩ ⁨week⁩ ago
    Coolidge-ism cannot fail. It can only be failed.
    
    Gutting the federal budget takes us several big steps closer to the Thiel/Yarvin/Srinivasan envisioned Network State of tiny autocratic techno-feudal states. We’re going to balkinize America, folks.
    
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  - wampus@lemmy.ca ⁨1⁩ ⁨week⁩ ago
    I don’t disagree with you – I believe their line of reasoning was along the lines of getting all the operating funds needed for the ‘government’ from revenue generated from tariffs. One reason for aggressively slashing social support systems could be that they want to shift people’s dependency for those programs more directly to corporate interests such as Google and Apple – many tech companies have ‘interests’ in the medical field after all. The one area they would likely still want to maintain govt functions in, are military in nature – the theory is that they want what are essentially geo-distant corporate city states that are connected via the internet, and protected by orbital weaponry / nuclear arms. Setting up a few blocs of this nature, and having them constantly feign conflicts with each other, will help to keep people placated as well, in a sort of horribly Orwellian sense. That sort of concern isn’t really something for the ultra wealthy to be bothered by though, which’s one reason oligarchies are so dangerous.
    
    Still looks like the USA is sorta heading in that direction a bit, though obviously any of my musings are just guesses based on conspiracy theories I find plausible – so I doubt it’d play out that way any time soon or anything. If there were ‘real’ flags of that sort of thing being imminent, I imagine some people in the govt would be making even more noise to us commoners, hah.
    
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- vaultdweller013@sh.itjust.works ⁨1⁩ ⁨week⁩ ago
  Sure but they’re also stupid meaning five minutes after they will realize why income tax was adopted. Tariffs were becoming inefficient by the time of the civil war let alone now.
  
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  - wampus@lemmy.ca ⁨1⁩ ⁨week⁩ ago
    And loss of trust / stability of the government makes the tech industry’s push for corporate controlled ‘freedom cities’ much easier to get agreement on, allowing America’s rich oligarchs to quite literally establish their own baronies ;P
    
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T00l_shed@lemmy.world ⁨1⁩ ⁨week⁩ ago
So efficient

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AlecSadler@sh.itjust.works ⁨1⁩ ⁨week⁩ ago
I am one of those skipping filing to see what happens.

Delay, deny, dispose [of the IRS letters].

I’m taking that money and donating it to local charities and helping people in my community.

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- melpomenesclevage@lemmy.dbzer0.com ⁨1⁩ ⁨week⁩ ago
  seems like the way to do it. funding your community is the right thing to do.
  
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- douglasg14b@lemmy.world ⁨1⁩ ⁨week⁩ ago
  Problem is it it will catch up to you if you owe taxes.
  
  When this country recovers, be that in 10 years, then virus will happily go after the tax dodgers of yesterdecade.
  
  That would be my worry.
  
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  - AlecSadler@sh.itjust.works ⁨1⁩ ⁨week⁩ ago
    That’s fine. I’d rather pay a recovered government than the current one…if that happens.
    
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ToiletFlushShowerScream@lemmy.world ⁨1⁩ ⁨week⁩ ago
How much of this is because of America’s new found love of famous tax dodgers they put into the government? So they think that trump is their new best friend, and if their best friends dont pay taxes, why should they?

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shortwavesurfer@lemmy.zip ⁨1⁩ ⁨week⁩ ago
Taxation is theft, so not paying them is fine by me. But if you’re going to do so, you probably shouldn’t be shouting about it on the internet.

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- jjjalljs@ttrpg.network ⁨1⁩ ⁨week⁩ ago
  No it’s not. Not paying your taxes and using public services is more arguably theft.
  
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  - henfredemars@infosec.pub ⁨1⁩ ⁨week⁩ ago
    We have few public services and the few that we have are being torn down as you read this comment, so they might be half right for the wrong reasons.
    
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  - shortwavesurfer@lemmy.zip ⁨1⁩ ⁨week⁩ ago
    So you enjoy killing people. Got you. Because that’s what your tax money is used for. To fund wars halfway across the globe. For people you’ve never met and who have caused you no harm.
    
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- aramova@infosec.pub ⁨1⁩ ⁨week⁩ ago
  While I’m typically all for debate and reason, this take is objectively the most fucking moronic spew of nonsense every single time I come across it on par with the sovereign citizen batshit nonsense.
  
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  - shortwavesurfer@lemmy.zip ⁨1⁩ ⁨week⁩ ago
    And opinions are like assholes. You have one and so do I.
    
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- surewhynotlem@lemmy.world ⁨1⁩ ⁨week⁩ ago
  Not paying taxes is theft.
  
  The government is going to spend whatever it wants. They will get the money by printing it if they can’t get it from tax. This causes rampant inflation, which is the same as a flat tax.
  
  By not paying your share of taxes, you’re simply stealing from your neighbors.
  
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  - shortwavesurfer@lemmy.zip ⁨1⁩ ⁨week⁩ ago
    Don’t use a money they can print. Use gold.
    
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- GenosseFlosse@feddit.org ⁨1⁩ ⁨week⁩ ago
  Lol, go and visit some country with a very low tax rate or no tax. need to visit a hospital? That’s a 3h drive across some unpaved road on the next big city. Want to cook your food? Go and collect some wood for your brick stove, because the city does not provide gas or power to your house. Need water or power? See gas. Want to read a book? Bad luck, there was no free school service in your village to learn how to read. House on fire or crime in the neighborhood? Well I have more bad news for you .
  
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  - vga@sopuli.xyz ⁨1⁩ ⁨week⁩ ago
    Perhaps you oughta visit Switzerland some day.
    
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- Madison420@lemmy.world ⁨1⁩ ⁨week⁩ ago
  You’re part of the problem go back to civics class and this time pay attention.
  
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- prototype_g2@lemmy.ml ⁨1⁩ ⁨week⁩ ago
  Image
  
  www.youtube.com/watch?v=4gZ2dc58pHc
  
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LovableSidekick@lemmy.world ⁨1⁩ ⁨week⁩ ago
Musk: That’s $500bn we won’t have to spend valuable resources counting, so Boom another win!

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ABetterTomorrow@lemm.ee ⁨1⁩ ⁨week⁩ ago
I haven’t done my taxes yet.

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Red_October@lemmy.world ⁨1⁩ ⁨week⁩ ago
Can’t wait for everyone who talks shit about President Musk to get audited. It wasn’t their plan but this is absolutely going to be a trap to catch people who resist the nazi takeover.

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Realitaetsverlust@lemmy.zip ⁨1⁩ ⁨week⁩ ago
Hearing “revenue” from the statement of the tax department is … Crazy

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- L0rdMathias@sh.itjust.works ⁨1⁩ ⁨week⁩ ago
  IRS is an acronym which stands for Internal Revenue Service.
  
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werefreeatlast@lemmy.world ⁨1⁩ ⁨week⁩ ago
Enter Taxt Accountant, Know it all AI…Mr. Smith, it says here you sold …

Gifted…

Sold your old Nissan Sentra for a song. Can you please sing that song for us in the mike?

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- Cort@lemmy.world ⁨1⁩ ⁨week⁩ ago
  No. I can’t sing. That’s why I gifted it for a song
  
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whome@discuss.tchncs.de ⁨1⁩ ⁨week⁩ ago
They will just enact draconian penalties.

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Letsdothisok@lemmy.world ⁨1⁩ ⁨week⁩ ago
All sounds like good news

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