Marco Gruteser, Rutgers University
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Taxation matters: The IRS has seen over 25% of its 100,000-strong workforce depart since last year. The division investigating ultra-wealthy individuals lost 38% of personnel shortly after Trump's inauguration. Under Acting Commissioner Scott Bessent, the agency has redirected human resources and technology personnel to handle tax filings. Anticipate postponed refunds, with additional IRS reductions outlined in Trump's 2027 budget proposal. Despite workforce shrinkage, federal tax income climbed approximately 6% last year to about $5.2 trillion—projected to reach nearly $5.5 trillion this year due to trade tariffs and economic expansion. Corporate tax collections fell nearly 15% to $452 billion and should remain stable given tax reductions. The IRS claims artificial intelligence improves fraud detection—a crucial advantage since Yale's Budget Lab estimates agency cuts might lead to $2.4 trillion in lost revenue over a decade.
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