Billionaire entrepreneur Elon Musk sparked debate recently after posting a poll on X about the Internal Revenue Service's (IRS) funding. Musk asked users if the IRS's budget should be "increased, same, decreased, or deleted." Of the 212,000 respondents, 60.6% voted to "delete" the agency's funding entirely.
Musk, appointed colead of the informal Department of Government Efficiency under President-elect Donald Trump, shared the poll following recent remarks by Deputy Treasury Secretary Wally Adeyemo. Adeyemo had urged Congress to unlock $20 billion in withheld IRS funding, warning that without these resources, the agency may face significant operational challenges.
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"The IRS just said it wants $20B more money," Musk wrote. He then asked users to weigh in on its budget. The results showed strong opposition to increased funding:
- Deleted: 60.6%
- Decreased: 29.9%
- Same: 3.9%
- Increased: 5.6%
The poll results reflect frustrations expressed by many users, with calls for alternatives like a flat-tax system gaining traction.
The IRS faces uncertainty over its budget as Congress approaches a Dec. 20 deadline to finalize full-year appropriations. Temporary budget measures passed in September held the agency's funding at current levels but required the IRS to postpone $20 billion from the Inflation Reduction Act's allocated funds.
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Deputy Secretary Adeyemo warned that without additional resources, the IRS might need to halt hiring and cut back enforcement efforts. He noted that failure to secure the funds could lead to a $140 billion increase in the national deficit due to reduced audits on wealthier taxpayers and large corporations.
"The IRS is going to potentially have to make dramatic decisions about stopping hiring and starting to budget for a world which they don't have $20 billion which will stop a lot of their progress," Adeyemo said during a press call.
Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, also voiced concerns, stating, "Given the fiscal situation, we deeply hope there is no backsliding in the coming months and years with rescinding, diverting, repealing any of the revenue that is going effectively into the IRS to help with tax collection."
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The discussion over IRS funding has been polarizing. Supporters argue that the additional $80 billion allocated through the Inflation Reduction Act is essential to modernizing operations and improving tax compliance, particularly among high-income earners. Critics, including Musk and others in the Trump administration, see the agency's budget as an opportunity for cost-cutting.
Musk and his colead Vivek Ramaswamy have pledged to slash government spending, aiming to reduce the federal budget by $2 trillion. Congressional Republicans have also proposed cuts to IRS enforcement, which critics say could hinder efforts to close the tax gap.
As the Dec. 20 deadline approaches, the debate over IRS funding will likely intensify. Whether Congress will restore the $20 billion or continue with reduced funding remains uncertain, but the agency's ability to operate efficiently hangs in the balance.
For taxpayers, the outcome could influence enforcement activities, the national deficit, and broader fiscal policy in the years to come.
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