IRS Faces $500 Billion Revenue Drop as Taxpayers Defy Cuts
The IRS anticipates a potential $500 billion revenue shortfall due to a significant decrease in tax filings, a consequence of recent Department of Government Efficiency layoffs. This projected loss, exceeding 10% of expected tax receipts, is attributed to taxpayer behavior changes following substantial IRS staff reductions. Experts warned against these cuts, predicting operational dysfunction and decreased revenue collection. While other factors might influence the revenue decline, they are insufficient to account for the projected $500 billion loss.
John Q. Hosedrinker