With the day of taxes comes and went, Internal revenue service On the right track to collect less revenues this year more than the past. Former Tax Authority employees blame discounts by billionaire Elon Musk and Republicans for low revenues, which means expanding the federal deficit before the deadline of the debt ceiling this summer.
The new weekly deposit data from the Tax Authority, which was issued on Friday, shows that the agency has received a total of 1.7 % less Tax declarations Compared to the same time period last year. The Tax Authority notes some of the reasons that make the agency have witnessed less than this year, including that the multiple countries are in the case emergency The deadline for their residents was moved to May; Other people may also apply for extension.
However, the former Tax Authority employee and head of the National Treasury Union, Doreen Greenwald, told Salon, in her opinion, that reducing deposits and income is largely due to the dramatic discounts of the agency MUSK and President Donald Trump.
“What we have seen is that Dog is going to federal agencies in all fields, removing federal employees – trained federal employees and skill in the work they are doing to present programs to the American people, as they believe,” said Grenoald. “Federal employees are an effective way to do business. So when you invest in a federal employee, we assume that you are investing one dollar on average, the return is $ 8. If you invest in an auditor who does complex reviews, you see $ 12.”
Greenwald said that even if Republicans replace some workforce with contractors, these contractors will be less efficient than federal employees and are likely to lack experience to perform complex audits that are often required for higher owners. She added that the contractors will also sacrifice the privacy of the Americans of the tax authority.
In March, Washington Post I mentioned Treasury officials and Tax Authority officials expect that tax revenues will decrease about 10 % compared to the previous year. This decrease will reach an absolute decrease in the revenues of about $ 500 billion. Even by Dog Estimates New York Times estimates Reports It is largely assured – the agency claims that it has provided only about 155 billion dollars, which means that the Musk agency, through its discounts to the Tax Authority, is on the right path to cost the United States government more billion than claimed.
The agency was in turmoil since the beginning of Trump’s term, and it had three representations Leaders Only last week, with Treasury Secretary Scott Besin, is struggling to influence the Treasury Department. As of Friday, Pessen’s deputy, Michael Foulkander, is scheduled to take over the role of the Acting Tax Authority.
According to reports in mail and New York TimesDogs began to reduce about 20,000 jobs in the Tax Authority at the beginning of the Trump administration, with the lion share of these jobs coming from the tax compliance and taxpayer services. About 22,000 employees in the Tax Authority registered for the administration’s resignation offer, about five of the agency’s total workforce. These losses can lead to a greater decrease in next public tax revenue.
In the background of MUSK to reduce deficit, The Wall Street Journal I mentioned This actual federal spending increased during the Trump era, with an analysis of the data of the Treasury, which indicates that the Republican administration has already spent about 154 billion dollars more than the administration of President Biden during the same time period.
Dog included the agency, regardless of the billions that it is likely to cost, Collective From taxpayers data, Musk and his team of young employees were granted access to personal information information, including social security numbers, income, banking services accounts, mediation, potential medical expenses, and immigration.
David Cass, Executive Director of Americans for tax fairness, told the salon that the discounts reached by employees in the Tax Authority will greatly benefit the richest Americans, who tend to obtain more complex taxes that require more scrutiny.
“We know that the wealthy have complex tax declarations. They have partnerships and all kinds of luxury financial things. So to make sure they are compliance with the law, you need people in the Tax Authority who have experience to be able to pass these things,” said Cass.
Cass said that after the approval of the inflation reduction law in 2022, which increased the financing of the Tax Authority, the most richer American payments increased, as the agency gathered “hundreds of millions of dollars in millions who did not pay their taxes.” Cass said that this type of cuts that musk puts in the Tax Authority is exactly the type in which he personally stands to benefit from.
“If you are a billionaire, the last thing you want is that the Tax Authority be able to check you. What is a great system where you have, all these billionaires in the cabinet in Trump, who are working hard, especially Elon Musk, to ensure that the Tax Authority does not have the ability to review them, and therefore it leads to more and more fraud.”
Although the current data does not give the full picture of the taxes collected last year, the expected decline in revenue is likely that the United States will have to process the debt ceiling, the maximum on The total amount From money allows the government to borrow, As soon as possible than the expected date in August. Friday data is also related to individual taxes and does not deal with corporate taxes. Many companies also take extensions, which means that it may be that it may be when a fuller image appears.
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