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Yesterday, the New York Times devolved into a full panic, running a story headlined, “Trump Administration Pushes to Slash I.R.S. Work Force in Half.” Leaping to find the glass half-empty, the Times’s sub-headline groused, “Americans may have to wait longer to receive tax refunds.” Cue the tiny violins.
“The IRS is preparing to shed as much as 50 percent of its staff,” the Times marveled, “a significant cut that could jeopardize the agency’s ability to complete its basic mission of collecting taxes.” Progress. Maybe they should consider pruning up the tax code? Maybe that would cut down on the workload? Oh, nevermind.
As always, it was the terror of the possible. The Times found three possible catastrophes to complain about. First, a possible delay in “processing refunds.” Second, maybe longer wait times for phone service. And third, there might be fewer audits.
Not fewer audits! Joe, say it isn’t so. (Chalk up another 80/20 issue Trump is claiming for the GOP.)
But the real problem is that the IRS isn’t exactly crushing it. According to a 2023 CATO Institute article, things at the nation’s most feared and despised agency are not super great:
The IRS answers the tax-assistance line only about 11% of the time, and those lucky souls got through after an average of 29 minutes on hold.
28 percent of calls received a “courtesy disconnect,” which is IRS-speak for hanging up on people after they’ve been on hold for 90-120 minutes, and telling them to try it over again later.
The IRS takes over 350 days to resolve cases of identity theft involving fake returns.
IRS staff enter paper returns into the IRS system by hand, resulting in up to 43% error rates.
Treasury’s inspector general estimated the IRS could save over $200 million a year in labor costs just by ending manual data entry of paper returns.
They haven’t exactly created a loyal fan base, either:
Unlike all other criminal law, in tax cases the burden of proof is on you, the taxpayer, not the government.
You get no trial by jury in Tax Court.
The Fifth Amendment does not apply to tax matters. Taxpayers must sign their returns “under penalty of perjury”— regardless that it might later be used against them in a criminal case. In other words, no Miranda. They don’t read you your rights.
Since last year, even selling a broken toaster on eBay gets you a 1099-K, dumping the burden on you to prove you didn’t turn a taxable profit.
And that’s just the administrative incompetence—we haven’t even touched on the weaponization of the IRS for political purposes. If you want to read a more complete primer on the IRS’s many failures, that 2023 CATO Institute article is a great place to start.
DOGE it! I would call cutting IRS in half a good start.
I'd like them to repeal FATCA and FBAR. Manchurian Obama pushed these so that only the oligarch rats could leave the sinking ship. Can't afford Cayman Islands shell corps to hide your stash? Too bad.
So far not a pip on abolishing FIT.
stereotomy says
I'd like them to repeal FATCA and FBAR. Manchurian Obama pushed these so that only the oligarch rats could leave the sinking ship. Can't afford Cayman Islands shell corps to hide your stash? Too bad.
Wait, the ship is sinking?
RWSGFY says
stereotomy says
I'd like them to repeal FATCA and FBAR. Manchurian Obama pushed these so that only the oligarch rats could leave the sinking ship. Can't afford Cayman Islands shell corps to hide your stash? Too bad.
Wait, the ship is sinking?
The petrodollar is sinking and the Triffin Dilemma is coiling like a python around it.
https://x.com/TheRabbitHole84/status/1909368942390657480
To be fair, in 1913 gubmint wasn't doing much: no SS, no medical anything, no wellfare, no interstates, no FAA, no FDA, no NOAA, no NASA, no subsidies for farmers and Tesla, etc.
I don't like taxes, but even as a former smoker I do think cigs should be taxed heavy.
Bloomberg ran an exciting story this weekend headlined, “Trump Floats New Income Tax Cut in Bid to Ease Tariffs Bite.” Talk about underselling the headline. The proposal apparently aims to eliminate all income taxes on people making less than $200,000 a year. Here’s what the President tweeted yesterday:
Donald J. Trump
@realDonaldTrump
When Tariffs cut in, many people's Income Taxes will be substantially reduced, maybe even completely eliminated.
Focus will be on people making less than $200,000 a year. Also, massive numbers of jobs are already being
created, with new plants and factories currently being built or planned. It will be a BONANZA FOR AMERICA!!! THE
EXTERNAL REVENUE SERVICE IS HAPPENING!!!
Trump said it will take time, it won’t happen overnight, and you would think media would be okay with that, since we’re still waiting for President Brainpan J. Autopen’s so-called ‘inflation act’ to kick in. (Hint: don’t hold your breath.) “We’re going to make a lot of money, and we’re going to cut taxes for the people of this country,” Trump said yesterday while heading back to Washington from his New Jersey golf club. “It’ll take a little while before we do that,” he added.
Maybe it will happen … right before next year’s midterms? That would be propitious timing.
I'm at 10% marginal Federal tax rate.
Making something illegal which Americans all consume wasn't a great idea, but it sure attracted guys like Al Capone willing to step in and supply us.
Do we know what happened after 1913 which caused the government to start taxing people?
As I suspect interest rates will go up back to historical norms, and the interest rate will naturally fluctuate based on economics rather than a Fed chief trying to throw failing Presidents a lifeline, by keeping them artificially low.
Of course people wont be getting $8000 more than they put in, but at least there would be that yearly windfall for them.
Or at least return the Savings and Loan model where savers enjoy the same interest banks charge borrowers. As I suspect interest rates will go up back to historical norms, and the interest rate will naturally fluctuate based on economics rather than a Fed chief trying to throw failing Presidents a lifeline, by keeping them artificially low. It might even bring the home prices down, as who in the hell could afford 10% interest on a 700K 1500 sqft crap shack?
I know the so called Libertarians who demand the government policies should only operate the way they see fit to suit their economic situation. But for other folks who aren't entrepreneurs or investors. Saving is the only way they got ahead. People used to buy houses and send kids to college by saving and getting a fair interest rate for doing so.