Tuesday, April 15, 2025

CNBC explains 'How The IRS Layoffs Will Impact Your Taxes And Refunds' for Tax Day

For Tax Day, I'm sharing CNBC explaining How The IRS Layoffs Will Impact Your Taxes And Refunds.

Thousands of employees at the Internal Revenue Service have lost their jobs in recent months as part of widespread cuts to federal spending by Elon Musk’s Department of Government Efficiency, or DOGE. The layoffs could impact essential functions at the agency during the height of tax season, from audits and collection enforcement to processing tax returns and refunds.
I'm repeating what I wrote two years ago.
Why am I not surprised that the "Satan Sandwich" budget sequestration deal and 2017 tax bill both played major parts in the shrinking of the IRS, that the Inflation Reduction Act is restoring that lost funding and staffing, and that the Republicans in Congress are seeking to reverse the IRA's increased funding of the IRS as part of raising the debt ceiling? Because I've been watching Washington long enough to see history rhyme, if not repeat.
When Donald "Hoover Cleveland" Trump became President the first time, the result was the 2017 tax bill, the tax cuts from which will expire in 2026. Those will almost certainly be extended, so history will repeat again. What's different this time is Trump's "shock and awful" and especially "Elon Musk's...Chainsaw Massacre of our federal workforce." It feels like any good deed Biden (and Obama and Clinton, if possible) did must be undone, if not destroyed, just like Hoover Cleveland crashing the plane of the economy after Biden piloted to a soft landing. Ugh.

So far, as CNBC pointed out, the cuts have not affected service for middle-class Americans. My wife filed our taxes last week and we should get our refund tomorrow, for example. They will reduce enforcement on the weathiest 1%, resulting in non-collection of $1 billion. Way for Hoover Cleveland and Elon Musk to look after themselves and their fellow billionaires. That's not the kind of class solidarity we need.

Enough about taxes. Stay tuned for Wayback Wednesday tomorrow. I have something fun planned.

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