The Trump administration's proposal to cut 50,000 IRS employees may weaken the agency's capacity to enforce tax laws, leading to significant revenue loss. According to Oxfam America, such a reduction would allow the wealthiest individuals to avoid an estimated $30 million in taxes daily, exacerbating tax evasion among the top 1%, who are responsible for a substantial share of unpaid taxes. The study indicates that ordinary taxpayers would face longer wait times for refunds and reduced customer service, ultimately disadvantaging those less affluent in favor of the wealthy.
The analysis by the humanitarian group Oxfam America notes that the firing of 50,000 IRS employees would hurt ordinary people through slower refunds and customer service, while allowing wealthy tax cheats to pocket billions.
Oxfam cites a recent study by the Yale Budget Lab estimating that the richest 1% in the U.S. are responsible for around 30% of the nation's unpaid taxes.
Rebecca Riddell, Oxfam America's senior policy Lead for Economic and Racial Justice, states that cuts to the IRS would make it harder to fight poverty and easier for the richest taxpayers to avoid paying.
If the IRS were to lose 50,000 employees, the agency's diminished capacity would result in $395 billion in lost federal revenue over a 10-year period.
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