The Trump administration's decision to lay off 6,700 I.R.S. employees aims to reduce operational costs but paradoxically threatens the efficiency of tax collection, potentially increasing the government's deficit. The I.R.S. is crucial for collecting unpaid taxes; thus, diminishing its capacity undermines efforts to close the annual tax gap of approximately $700 billion. This approach essentially asks honest taxpayers to bear the financial burden, while enabling tax evasion, complicating modernization and customer service improvements within the agency.
...the Trump administration started laying off about 6,700 I.R.S. employees, many if not most of whom are directly involved in collecting unpaid taxes.
Aggressive cuts to our nation's accounts receivable function will reduce the amount of tax revenue coming in, which will in turn increase our nation's deficit and add to our $36 trillion in debt.
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