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IRS braces for $500bn drop in revenue as taxpayers skip filings in wake of DOGE cuts (www.independent.co.uk)

submitted 1 day ago by MicroWave@lemmy.world to c/economics@lemmy.world

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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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[–] jjjalljs@ttrpg.network 7 points 1 day ago

Progressive taxation has been systematically attacked by conservatives for years. That's why you see people saying we should make the top marginal tax rate back to 90% like it was in the 60s. https://taxpolicycenter.org/statistics/historical-highest-marginal-income-tax-rates

You also need to address problems like stepped-up-basis, and buy-borrow-die strategies. I think there are also unpatched problems with corporate income, but I'm less familiar with the details there.

This is a complicated and storied part of humanity. I really recommend reading more about it.