DOGE IRS Cuts Risk $500 Billion Revenue Loss, Watchdog Finds

The Department of Government Efficiency (DOGE), established by President Donald Trump and led by Elon Musk, has resulted in significant federal workforce reductions, including more than 11,000 cuts at the IRS alone, potentially costing taxpayers billions in lost revenue and economic activity according to Citizens for Responsibility and Ethics in Washington. These cuts have affected multiple agencies such as the Consumer Financial Protection Bureau, which has historically returned billions to Americans, and have also restricted the work of inspectors general who oversee agency efficiency and protect taxpayer funds. Meanwhile, GOP tax legislation proposes increased documentation requirements for low-income taxpayers claiming the earned income tax credit, potentially overwhelming an already strained IRS. Additionally, the Senate GOP tax cut package is projected to increase the federal deficit by roughly $442 billion over a decade using a controversial scoring method favored by Republicans, though this estimate is significantly lower than the House bill's impact due to differing baseline assumptions. These developments highlight tensions between government efficiency initiatives, tax policy changes, and their combined impact on federal finances and taxpayer protections.