The thing that makes me nervous is the statement that they plan to use AI. AI? The thing that is mathematically incapable of perfection, on finance information, for which perfection is table stakes? Not to mention all the privacy issues (although that boat has sailed).
The people in charge have a pathological hatred for the IRS. AI is just an excuse to continue destroying the capabilities of the IRS. In the meantime, they’ll keep borrowing to fund the government while telling everyone it’s ok because they slashed programs that make up a tiny portion of the budget. This can go on until there is a major economic shock related to US debt, but honestly, most of them will be dead by the time that happens.
Most tax returns these days are prepared and submitted electronically so the basic work of the arithmetic involved should be as close as possible to perfect already. Evaluating that is going to be pretty mathematically intensive though and LLMs have been pretty bad at that. Tool usage has gotten it better so maybe they'll just hand off the validation to the existing traditional computing and mostly be vibes based, 'does this return look legit?' evaluation.
I thought I would give the Treasury the benefit of the doubt for a moment and check whether they meant LLMs like we're all assuming, or possibly a more specific finance-focused type of AI. Like how we have specialist neural net AI helping with radiology.
Looking at their official info document[1]... "a secure AI-based chat solution"... "AI-assisted code development"...
I'm starting to realize that an LLM isn't gonna take my job, but it's beginning to make the job aggravating enough to quit anyhow. So many managers have decided they're going to have an AI Miracle and aren't interested in hearing otherwise, no matter what staff tells them.
Unfortunately the big players are pretty entrenched so the degraded quality that appears once AI fails to replace laid off workers will have minimal impact on their bottom line. And the bar for government is literally as low as "Is this such bad UX that it will cause a revolution?".
So why would they care whether its Covid, AI or a Recession that gives them the excuse to do less and less. The system keeps on rolling, the rich get richer, normal peoples lives get incrementally shittier.
Does this have anything to do with AI push? It is fairly straightforward that billionaire class cooperating with Trump admin dont want to pay taxes. Republicans want IRS incapable so that tax fraud flourish. Bonus point is that they will be able to pretend worry about it with minorities.
The part I don't understand is why can't they wait for the efficiency gains to materialize before firing people? Better pay a few people for a few months extra than be wrong. If AI is going to bring in all this efficiency, this would be peanuts.
My manager thinks if we give it a year or two, no one will write code by hand anymore, we will just generate everything from specifications in English.
> So many managers have decided they're going to have an AI Miracle and aren't interested in hearing otherwise, no matter what staff tells them.
Managers' manager convinced them they should expect an AI Miracle. Now your job is to put on a show to pretend to create an AI Miracle so your manager and their manager can pat themselves on the back.
Under enough pressure to use AI people will just produce code as before but LLM-ize it with more comments and verbose crap to look like AI did it. "See boss, I am using AI, so happy you got us this tool".
However, if you do it too well the next step will be "we don't really need so and so, we'll just replace them with an AI agent since it was working out so well".
The low income (under 25k) with EITC, were the largest audited group with 298,485 of 626,204 audits performed in 2022. The rest of those earning under 200k had 250,391 audits.[]
48% of audits were under 25k income. 87% of audits were people under 200k income.
Kind of interferes with the idea these audits were all about going after the uber rich. They were way more about going after the poor than they were about going after the rich.
How many of those <25k audits were completely automated? Going after the poor with an automated script at scale is basically free money for a government without compassion.
It's not "going after" the poor. You have to be out-right negligent to end up with any penalty at all, and the penalties involved are relatively small (20% of how much extra you owed them anyway). The vast majority of these low-income audits consist of "hey, we know you made money X, you didn't report it on your taxes. Fix it".
I make above median wage in the US and pay like 13% income tax on average.
Poor people pay very little income tax, as is the entire point of a progressive set of tax brackets and a large standard deduction.
It is trivial to not do your taxes wrong if you have legal employment. If you for some reason doubt your ability to do a couple calculations and copy over 6 numbers to a simple form, Turbotax will do that "hard work" for you for $30.
Even using Turbotax, I once failed to report a W2 (because I technically had more than one job) and the "penalty" was a letter that said "Hi, you missed this, we fixed it, give us $270 + $1 interest", which I never responded to because I am disordered, so they took my state income tax return.
No court. No threat. No serious penalty. I didn't even have to talk to anyone.
If we are talking about poor people, who by definition have minimal income, how do you think they supposedly would get hit by some giant IRS penalty? What is the magical pathway?
I mean, $200k puts you well above the 90th percentile of earners in the US, so the IRS is (if only slightly) focusing extra resources on the wealthy. Audits go after people who have relatively obviously incorrect information on their taxes. For people under $25,000, there's a good chance they forgot a W2 or something, which means it's a quick identification and fix for the IRS.
It's super weird to believe auditing a normal person and auditing "the uber rich" is in any way comparable. In both cases the thing being done can be referred to as an "audit," but that's it.
The point of prior recent investments in tax police (that the GOP worked to claw back) was specifically to enable the enforcement of complex cases (rich people) that they didn't have the bandwidth to engage.
This follows the same logic as the claim that Biden bulldozed the border wall to make immigration law unenforceable. If you deliberately weaken enforcement capacity (and also burden/cripple government with unsustainable debt), you can then point to dysfunction as proof the system doesn’t work.
The only difference is that in this case, the stated goal of ‘starve the beast’ is intentionally sabotage the entire government as policy goal. Underfund agencies, expand deficits through tax cuts, then cite the resulting debt and institutional breakdown as justification to dismantle more of government.
It almost makes the people who were outraged at the idea of sabotaging border enforcement seem disingenuous that they don't now care that undermining federal capacity is public strategy.
Defunding the IRS is nothing but an effort to reduce tax enforcement. People that have relatively straightforward finances can be trivially audited in a formulaic way with data that's on hand - a lack of human auditing resources tends to benefit those with more complex finances which also tend to be the people with a lot of money who can afford to lobby for less enforcement funding.
Also for reference, in 2024 the IRS had a rate of return of 415:1, they'll obviously target the lowest hanging fruit first but for every dollar of funding received they collected 415 dollars of tax revenue that would have been missed. This is an obscenely efficient organization.
Implied in your statement - it benefits those who can create more complex financial situations. Often the complexity of the situation is largely synthetic.
I agree that the complex financials are generally intentionally created for sheltering and that complexity is only possible because of our overly complex tax code which has been made significantly more complex by tax preparer lobbyists from Intuit and others.
Half-joking but this is genuinely the trajectory. The problem is that tax analysis requires understanding intent behind complex structures — is this a legitimate trust or a shell game? That's adversarial reasoning, not pattern matching.
The real risk isn't that AI can't find anomalies — it's great at that. The risk is that the people creating complex avoidance structures will use AI too, and they'll iterate faster than a government system updated on procurement cycles. You end up with AI vs AI where one side has a 3-year upgrade timeline and the other ships weekly.
They could also simplify tax law and they wouldn't need so much enforcement. There shouldn't be 5000 types of taxes spread all over the place.
Get rid of sales tax, property tax, exemptions, IRAs, 401ks, short capital gains, long capital gains, medicare, state, all of that bullcrap. Annualized, non-annualized, credits for having an EV on the 4th day of the second Tuesday while being a fisherman, married and single filing differences, end all of that.
Just have one income tax. It should be the sigmoid of your income normalized to the median income in your zip code, then scale it so that the total of everyone's taxes added up makes up for all the other types of tax that we're getting rid of.
The IRS should then distribute whatever is needed to the states. The states are part of the country, their hierarchy is not my problem; give me one number to pay. My tax return should be no bigger than a postcard.
> Get rid of sales tax, property tax, exemptions, IRAs, 401ks, short capital gains, long capital gains, medicare, state, all of that bullcrap. Annualized, non-annualized, credits for having an EV on the 4th day of the second Tuesday while being a fisherman, married and single filing differences, end all of that.
I agree with your overall point of simplifying taxes by merging more things into income tax, but some of the taxes you mentioned are levied by local governments to fund themselves. The United States has a federal system; it would be a much bigger change to centralize all of the funding.
Which misses the point. If the point is to reduce the number of taxes, having the federal government collect 10 different types of taxes instead of state governments collecting 7 types of taxes won't change all the different taxes we have.
There is no singular place we can change how many different taxes you pay. There's... thousands? Tens of thousands? Once you factor in city, county, state, federal, special districts, etc.
By definition, a federal system does prevent a single point of collection and distribution. If states could not or did not collect taxes on their own authority, it would not be a federal system. States would just be adjuncts of a national government.
Why would you simplify the tax code if the whole point of the tax code is to create loopholes so you can pay way less taxes than the public would vote for?
The tax code exists for Welfare Queen Billionaires like Elon Musk.
Well see, you actually missed the catch that by eliminating everything except income tax people like Elon wouldn't have to pay any tax, it's even better for them. He's not getting a W-2, virtually all of his income is actually capital gains or similar.
The very first things you list aren't related to the IRS at all. They're local and state taxes, and to get rid of those would require a radical rewriting of the Constitution itself. Not to mention it would destroy all fire department, county hospital, school, city park, state park, etc. funding.
Of course they're not, but this is how you smell someone that doesn't really want to enforce paying taxes, but just wants to evade them as much as possible.
I don't think that's fair. The US has so many administrative layers with taxing powers - federal, state, county, and municipal, and in many cases administrative bodies also charge massive filing fees, and courts charge large fees to finance themselves because they're consistently under-funded by legislatures.
So Americans get taxed a lot at many different levels of activity. The cognitive load of having so many different points of taxation is annoying and exhausting to a lot of people. It makes household budgeting a lot more work than it really needs to be.
But it is this way because of the Constitution
They maybe we should change that and have a simpler system with much less complexity. Dismissing people who object to the painful complexity of the US tax regime as 'evaders' is npt insightful or helpful.
> maybe we should change that and have a simpler system with much less complexity
Wholeheartedly agree, but I see the root cause of the issue being income tax itself. As soon as you tax income, you'll go down and endless rabbit hole of what's fair to tax, how much, what kind of income, investment income vs wage income, percentage vs flat rate, etc...
That gave us the mess we have.
I like the idea of consumption tax exclusively (would require an amendment). You're taxed on your purchases.
It's easy to drive behavior (more tax on some things... tax on cigarettes, yachts and private jets) and easy to make more fair (exclude grocery staples).
Taxes aren't just there to provide an income stream to the government. It's also a mechanism to guide behavior via incentives (or punishment). Right or wrong there we're providing an incentive to hold assets longer, or use less fuel or buy from domestic producers etc.
Well it's a retort on the 2022 IRA bill, which increased the IRS budget by 80 billion over 10 years, and paved the way to hire 87,000 people. There has been a lot of hiring recently so it's hard to tell one thing from another but this isn't so much of mass layoff as an attempt at returning to normal.
The baseline was there was significant tax evasion by high net worth individuals. The staff up was to counter that, staffing down puts us back at reduced enforcement.
Is that 415:1 the rate of return of an audit, or the expense:revenue ratio of the IRS as a whole? I remember hearing some time ago that the expense ratio was 11% for the IRS? But 415:1 is way way less than 11%.
That “415:1” is misleading and manipulative. The target rate of recovery is ~10:1, which is roughly what the IRS actually achieves.
Audits are not an infinite money glitch. I used to work for a Federal audit agency that also recovered ~10:1. The reason we target 10:1 recovery on audits is because the return on funding additional audits beyond that falls off very sharply. Furthermore, more aggressive auditing greatly increases compliance costs which ultimately come back as costs to the Federal government, so the net recovered revenue is even less than the headline figure.
Audit recoveries tend to be about sloppy compliance, not people trying to cheat the system. People with more complex taxes are more likely to screw up the exponentially more complex compliance aspects. Auditors are mostly fighting entropy.
Not all public sector jobs are the same. Working for a defense contractor is not the same as working for the IRS. Defense gets money dumped on it year after year. The IRS gets starved year after year.
This is the case in all layoffs. Is there a bottom 10% of employees at OpenAI? By definition yes. If you do your absolute best to try and make redundant the bottom 10% of employees at OpenAI, how many of them do you think will actually be in the bottom 10%? I bet it's not all of them, it's probably not even close to half of them.
First you've got the good people who don't like the environment, they'll bite your arm off for the redundancy, then you've got the people who are doing fine but for whatever reason are happy enough to take their chances elsewhere, they'll be happy to be top of the redundancy list. Then you've got the good strong performer who pissed off the wrong person, they'll be on the list too. Then you've got the entire team that is really good and hardworking but senior management figure it's easy to just cut the entire team because their project isn't politically valuable. Before you know it the redundancy list is full and it has no correlation to the bottom 10% of performers, but because it's pretty much an almost random sample it does reduce your company's capability by 10%.
This is just the lazy comment of someone who believes all the right-wing propaganda about government. In my experience, government employees take pride in doing a job worth doing and doing it well.
It's not the IT department's fault, but it makes one wonder if the IT department needs to actually be that large, since customers need to do so much on their own.
Per capita the UK has 2.5x the IT workers in tax collection compared to the US (~25 IT per million vs 65 IT per million). But, those tax collection IT workers help create a system which means UK citizens don't spend hundreds of billions of dollars every year just to file their taxes.
I’m going to drop my doctor this year because he abuses appointments. I call in about an issue and he charges me $75 for telehealth. Then he wants me to come in to run labs for the telehealth call. Another $75 at least. Then another telehealth call for the results. And another one for the results from the radiology department. I told him I have a high out of pocket and he says “I’m sorry to hear that.” Then books me for a follow up.
Doctors do not care about the healthcare system one bit.
And yet all countries with socialized systems pay less per capita for healthcare than we do and pretty much all have better health outcomes. Further privatizing our system will only make it more dis-functional. Healthcare isn't a normal marketplace. * When you really need it, you can't shop around. * There is a knowledge asymmetry built in. * A civilized society can't just let poor children die of preventable causes.
They have worked recently to implement a self-hosted tax submission system and given their rate of return while there may be some mismanagement it is one of the most provably efficient organizations in the government netting 415$ for every dollar of funding in 2024.
Isn’t that a completely bizarre metric though in this instance??! It is specifically the revenue generating arm of the government. If it wasn’t running at a “surplus” that would be very concerning indeed.
I did no verification on whether that metric is correct or not, but I would suspect the metric would be only measuring the amount of revenue the IRS "generated" from doing manual work like audits. The regular, I owe 1,000 in taxes, and I paid 1,000 in taxes. Wouldn't be considered +1,000 in that case, it would be excluded from the metric altogether. Only the additional "findings" from audits would be counted.
No the point is that if the IRS was at maximum efficiency, more funding wouldn't increase revenues because tax law is tax law: you can't market it or expand the customer base.
But if every new dollar currently produces much more then a dollar in returns, it means it's underfunded because taxes that should be collected, that by legal analysis would be planned for in budgeting, aren't.
And that matters for a great many things, but one reason is that if you pay taxes and want a tax cut then one reason you're not getting it is because actual revenues are lower then they should be due to uncollected taxes.
I'm not saying we shouldn't have an IRS, and I think IRS agents are probably one of the best ROI gov't employees possible, but 8,500 IT engineers and managers (who I have heard literally didn't even know how to code) makes no sense at all
The tax code is complex and Direct File isnt the only IRS digital service. It was built by F18 and USDS. You should inform yourself instead of being hysterical about numbers. If you inform yourself the numbers aren’t so scary.
I'd be more impressed we got rid of income tax on salaried people entirely, or permit families the same type of deductions that businesses get, and only tax my actual profit - I can't deduct my overpriced housing, or my utilities unless I have a home office for ny own business.
> "Starve the beast" is a political strategy employed by American conservatives to limit government spending[1][2][3] by cutting taxes, to deprive the federal government of revenue in a deliberate effort to force it to reduce spending. The term "the beast", in this context, refers to the United States federal government and the programs it funds, primarily with American tax money, particularly social programs[1] such as education, welfare, Social Security, Medicare, and Medicaid.[3]
The headline say 40% based off something a single person said at a conference while the same article says the federal inspector general is saying a 16% reducation, as well as this quote:
> According to a report by the US Treasury Inspector General for Tax Administration, the IT department had 8,504 workers as of October 2024. As of October 2025, it had 7,135.
My good friend Sam Corcos is leading these efforts as the CIO of the Treasury Department. I know a good conspiracy theory about lowering taxes for the rich is much juicier, but if anyone is interested in learning more, he did an excellent interview on Chris Williamson’s podcast about how inefficient the IRS is:
I’m getting downvoted for posting a multi-hour interview where the guy leading these efforts is spelling out why and how. Makes me sad because HN used to be a place where, regardless of politics, people appreciated any new information and perspectives on the thing being discussed. Now it’s an echo chamber
People have literally started revolutions and wars over taxes. Empires have fallen because of taxes. People are often emotional and don't even want to think logically about taxes. I suspect that it's been like this since taxes were invented :-)
Vinay Hiremath has a blog post titled “I am rich and have no idea what to do with my life” so I’ll be charitable and say he’s willfully ignorant about what’s going on.
I am on the same site. It’s trash and doesn’t even come close to detailing the internal dynamics.
People have no idea what’s actually going on inside, but I guess it’s simpler to just be upset and take sides. There are people associated with DOGE (Sam included) who are tirelessly doing unsexy and thankless work while not being sensational like Trump or Elon. But they still get trampled on by people who simply want to be upset and ignorant.
Yeah, when you associate with liars, con artists, criminals, and pedophiles in their attempts to dismantle our democracy for their own personal gain, people are unlikely to thank you for your hard work. Your friend can go fuck himself.
It always sets off my spidey sense when people say 'leadership' because too many conflate management with leadership, and that is unfortunately not always true.
Few managers are actually leaders. Many are trumped up scribes. And many leaders are not managers.
I started a new LLC in December and applied for an EIN (company taxpayer ID, required for doing essentially anything else, like opening a bank account). Normally this is done online and takes two minutes. This time the online process failed and I had to fax the form in. Six weeks later, they faxed back the number.
To be clear: when it failed, I just got an error code and was told to fax in the paper form. Which contains exactly the same information I had just typed into the website.
SamoyedFurFluff | 2 hours ago
rileymat2 | 2 hours ago
cael450 | 2 hours ago
bpodgursky | an hour ago
rtkwe | 58 minutes ago
Nition | an hour ago
Looking at their official info document[1]... "a secure AI-based chat solution"... "AI-assisted code development"...
Okay they mean LLMs, carry on.
[1] https://home.treasury.gov/system/files/136/Treasury-AI-Strat...
kerblang | 2 hours ago
AtheistOfFail | 2 hours ago
hsbauauvhabzb | an hour ago
Freedom2 | an hour ago
ericmcer | 2 hours ago
So why would they care whether its Covid, AI or a Recession that gives them the excuse to do less and less. The system keeps on rolling, the rich get richer, normal peoples lives get incrementally shittier.
watwut | 2 hours ago
tokyobreakfast | 2 hours ago
That's wildly hyperbolic.
selectodude | an hour ago
People considering speaking frankly about reality as hyperbolic is how we got here.
astura | an hour ago
kerblang | an hour ago
> However, Pandya said IRS leaders are telling employees that AI won't endanger their jobs.
Not much of trump supporter myself, but I check HN for tech news rather than politics
newswasboring | an hour ago
mikkupikku | an hour ago
rmah | 43 minutes ago
monkaiju | an hour ago
orphea | 24 minutes ago
rdtsc | 51 minutes ago
Managers' manager convinced them they should expect an AI Miracle. Now your job is to put on a show to pretend to create an AI Miracle so your manager and their manager can pat themselves on the back.
Under enough pressure to use AI people will just produce code as before but LLM-ize it with more comments and verbose crap to look like AI did it. "See boss, I am using AI, so happy you got us this tool".
However, if you do it too well the next step will be "we don't really need so and so, we'll just replace them with an AI agent since it was working out so well".
mschuster91 | 2 hours ago
mothballed | 2 hours ago
48% of audits were under 25k income. 87% of audits were people under 200k income.
Kind of interferes with the idea these audits were all about going after the uber rich. They were way more about going after the poor than they were about going after the rich.
[] l IRS management audit reports obtained via FOIA by via TRAC / https://tracreports.org/reports/706/
DFHippie | an hour ago
hsbauauvhabzb | an hour ago
OkayPhysicist | an hour ago
hsbauauvhabzb | an hour ago
mrguyorama | 30 minutes ago
Poor people pay very little income tax, as is the entire point of a progressive set of tax brackets and a large standard deduction.
It is trivial to not do your taxes wrong if you have legal employment. If you for some reason doubt your ability to do a couple calculations and copy over 6 numbers to a simple form, Turbotax will do that "hard work" for you for $30.
Even using Turbotax, I once failed to report a W2 (because I technically had more than one job) and the "penalty" was a letter that said "Hi, you missed this, we fixed it, give us $270 + $1 interest", which I never responded to because I am disordered, so they took my state income tax return.
No court. No threat. No serious penalty. I didn't even have to talk to anyone.
If we are talking about poor people, who by definition have minimal income, how do you think they supposedly would get hit by some giant IRS penalty? What is the magical pathway?
trelane | 44 minutes ago
OkayPhysicist | an hour ago
justin66 | an hour ago
cake_robot | an hour ago
_DeadFred_ | an hour ago
The only difference is that in this case, the stated goal of ‘starve the beast’ is intentionally sabotage the entire government as policy goal. Underfund agencies, expand deficits through tax cuts, then cite the resulting debt and institutional breakdown as justification to dismantle more of government.
It almost makes the people who were outraged at the idea of sabotaging border enforcement seem disingenuous that they don't now care that undermining federal capacity is public strategy.
munk-a | 2 hours ago
Also for reference, in 2024 the IRS had a rate of return of 415:1, they'll obviously target the lowest hanging fruit first but for every dollar of funding received they collected 415 dollars of tax revenue that would have been missed. This is an obscenely efficient organization.
Traster | 2 hours ago
munk-a | 2 hours ago
netsharc | an hour ago
Next month's headline: "IRS signs 200-million dollar deal with Grok to use AI to analyse tax returns, determine who gets audited".
cranberryturkey | an hour ago
The real risk isn't that AI can't find anomalies — it's great at that. The risk is that the people creating complex avoidance structures will use AI too, and they'll iterate faster than a government system updated on procurement cycles. You end up with AI vs AI where one side has a 3-year upgrade timeline and the other ships weekly.
akdev1l | an hour ago
Just have a script with “what are the taxes owed by $name” and print the output
I’ll take $5M now and you can own 50% of my startup: GenTaxAI
oarla | 40 minutes ago
yibg | an hour ago
dheera | 2 hours ago
Get rid of sales tax, property tax, exemptions, IRAs, 401ks, short capital gains, long capital gains, medicare, state, all of that bullcrap. Annualized, non-annualized, credits for having an EV on the 4th day of the second Tuesday while being a fisherman, married and single filing differences, end all of that.
Just have one income tax. It should be the sigmoid of your income normalized to the median income in your zip code, then scale it so that the total of everyone's taxes added up makes up for all the other types of tax that we're getting rid of.
The IRS should then distribute whatever is needed to the states. The states are part of the country, their hierarchy is not my problem; give me one number to pay. My tax return should be no bigger than a postcard.
Done.
lazyasciiart | an hour ago
AdamH12113 | an hour ago
I agree with your overall point of simplifying taxes by merging more things into income tax, but some of the taxes you mentioned are levied by local governments to fund themselves. The United States has a federal system; it would be a much bigger change to centralize all of the funding.
dheera | 58 minutes ago
That doesn't prevent there being a single point of collection and distribution.
rmah | 48 minutes ago
PieTime | 39 minutes ago
In Canada provinces can choose to harmonize taxes or collect independently.
bcrosby95 | 20 minutes ago
There is no singular place we can change how many different taxes you pay. There's... thousands? Tens of thousands? Once you factor in city, county, state, federal, special districts, etc.
xnyan | 35 minutes ago
KK7NIL | 27 minutes ago
NooneAtAll3 | 25 minutes ago
what stops "local governments" from applying same type of tax as higher levels? why would they need taxes specific for them?
onlyrealcuzzo | an hour ago
The tax code exists for Welfare Queen Billionaires like Elon Musk.
DSMan195276 | 38 minutes ago
KPGv2 | an hour ago
The very first things you list aren't related to the IRS at all. They're local and state taxes, and to get rid of those would require a radical rewriting of the Constitution itself. Not to mention it would destroy all fire department, county hospital, school, city park, state park, etc. funding.
izacus | an hour ago
How quickly people show their colors.
anigbrowl | an hour ago
So Americans get taxed a lot at many different levels of activity. The cognitive load of having so many different points of taxation is annoying and exhausting to a lot of people. It makes household budgeting a lot more work than it really needs to be.
But it is this way because of the Constitution
They maybe we should change that and have a simpler system with much less complexity. Dismissing people who object to the painful complexity of the US tax regime as 'evaders' is npt insightful or helpful.
claytongulick | 36 minutes ago
Wholeheartedly agree, but I see the root cause of the issue being income tax itself. As soon as you tax income, you'll go down and endless rabbit hole of what's fair to tax, how much, what kind of income, investment income vs wage income, percentage vs flat rate, etc...
That gave us the mess we have.
I like the idea of consumption tax exclusively (would require an amendment). You're taxed on your purchases.
It's easy to drive behavior (more tax on some things... tax on cigarettes, yachts and private jets) and easy to make more fair (exclude grocery staples).
rtkwe | an hour ago
yibg | 58 minutes ago
claytongulick | 46 minutes ago
This was reaffirmed by Marshall [1] with the famous “the power to tax involves the power to destroy."
[1] https://www.archives.gov/milestone-documents/mcculloch-v-mar...
guywithahat | an hour ago
toomuchtodo | an hour ago
groundzeros2015 | 39 minutes ago
toomuchtodo | 9 minutes ago
stephen_cagle | an hour ago
jandrewrogers | 20 minutes ago
Audits are not an infinite money glitch. I used to work for a Federal audit agency that also recovered ~10:1. The reason we target 10:1 recovery on audits is because the return on funding additional audits beyond that falls off very sharply. Furthermore, more aggressive auditing greatly increases compliance costs which ultimately come back as costs to the Federal government, so the net recovered revenue is even less than the headline figure.
Audit recoveries tend to be about sloppy compliance, not people trying to cheat the system. People with more complex taxes are more likely to screw up the exponentially more complex compliance aspects. Auditors are mostly fighting entropy.
tokyobreakfast | 2 hours ago
DFHippie | 2 hours ago
Traster | 2 hours ago
First you've got the good people who don't like the environment, they'll bite your arm off for the redundancy, then you've got the people who are doing fine but for whatever reason are happy enough to take their chances elsewhere, they'll be happy to be top of the redundancy list. Then you've got the good strong performer who pissed off the wrong person, they'll be on the list too. Then you've got the entire team that is really good and hardworking but senior management figure it's easy to just cut the entire team because their project isn't politically valuable. Before you know it the redundancy list is full and it has no correlation to the bottom 10% of performers, but because it's pretty much an almost random sample it does reduce your company's capability by 10%.
nritchie | an hour ago
jdross | 2 hours ago
They barely have any products, and they contract externally for so much other work
justinator | 2 hours ago
IncreasePosts | 2 hours ago
justinator | an hour ago
IncreasePosts | an hour ago
Per capita the UK has 2.5x the IT workers in tax collection compared to the US (~25 IT per million vs 65 IT per million). But, those tax collection IT workers help create a system which means UK citizens don't spend hundreds of billions of dollars every year just to file their taxes.
justinator | an hour ago
tokyobreakfast | 2 hours ago
cdrnsf | an hour ago
jdross | an hour ago
righthand | an hour ago
Doctors do not care about the healthcare system one bit.
nritchie | an hour ago
ThunderSizzle | 34 minutes ago
Health insurance being tied to employment benefits is because the IRS taxes money, but not benefits, for example.
munk-a | 2 hours ago
bomewish | an hour ago
iranintoavan | an hour ago
XorNot | an hour ago
But if every new dollar currently produces much more then a dollar in returns, it means it's underfunded because taxes that should be collected, that by legal analysis would be planned for in budgeting, aren't.
And that matters for a great many things, but one reason is that if you pay taxes and want a tax cut then one reason you're not getting it is because actual revenues are lower then they should be due to uncollected taxes.
AKA tax fraud steals from the honest tax payer.
jdross | an hour ago
arcologies1985 | an hour ago
jdross | an hour ago
IRS direct file is just not that complex, I promise you, and are you sure it was even built in house vs contracted?
righthand | an hour ago
ThunderSizzle | 36 minutes ago
Not that impressive.
I'd be more impressed we got rid of income tax on salaried people entirely, or permit families the same type of deductions that businesses get, and only tax my actual profit - I can't deduct my overpriced housing, or my utilities unless I have a home office for ny own business.
throw0101a | 2 hours ago
> "Starve the beast" is a political strategy employed by American conservatives to limit government spending[1][2][3] by cutting taxes, to deprive the federal government of revenue in a deliberate effort to force it to reduce spending. The term "the beast", in this context, refers to the United States federal government and the programs it funds, primarily with American tax money, particularly social programs[1] such as education, welfare, Social Security, Medicare, and Medicaid.[3]
* https://en.wikipedia.org/wiki/Starve_the_beast
Of course the GOP isn't very good at cutting spending, so deficits (and debt) tend to go up under their administration.
sleepybrett | an hour ago
hvb2 | an hour ago
"Don't you support our troops"
Which is completely unrelated but it works very well as an attack line
dmix | an hour ago
> According to a report by the US Treasury Inspector General for Tax Administration, the IT department had 8,504 workers as of October 2024. As of October 2025, it had 7,135.
vhiremath4 | an hour ago
https://youtu.be/u4odAXoqRT8?si=UCpIBm8yy5aIaJcg
vhiremath4 | 56 minutes ago
rmah | 38 minutes ago
ertg5g5y | 53 minutes ago
https://dogetrack.info/people/enabler-staff#sam-corcos
selectodude | 39 minutes ago
vhiremath4 | 39 minutes ago
People have no idea what’s actually going on inside, but I guess it’s simpler to just be upset and take sides. There are people associated with DOGE (Sam included) who are tirelessly doing unsexy and thankless work while not being sensational like Trump or Elon. But they still get trampled on by people who simply want to be upset and ignorant.
senordevnyc | 18 minutes ago
JTbane | an hour ago
krior | 41 minutes ago
hinkley | an hour ago
Few managers are actually leaders. Many are trumped up scribes. And many leaders are not managers.
analog8374 | an hour ago
neuroelectron | an hour ago
wrs | 32 minutes ago
To be clear: when it failed, I just got an error code and was told to fax in the paper form. Which contains exactly the same information I had just typed into the website.
I don’t think the IRS needs fewer tech people.