Elon Musk's "DOGE" commission is presented as a project aimed at enhancing government efficiency. Its purported objective is to streamline operations within the federal bureaucracy to maximize taxpayer returns. However, the reality suggests otherwise as the commission is making cuts to staffing and resources at the Internal Revenue Service (IRS), hindering its capacity to combat tax evasion among the nation's wealthiest individuals. This reduction in tax collection will lead to increased budget deficits and a further rise in the national debt.
The GOP has consistently decreased the IRS budget, resulting in a large tax gap of nearly $700 billion annually, which is almost equivalent to the entire Pentagon budget. Narrowing this tax evasion loophole could significantly bolster government revenue without the need for tax rate hikes. If the IRS managed to collect all owed taxes, federal income could increase by 14%, bringing the $1.8 trillion annual budget deficit closer to $1 trillion and improving budgetary prospects.
Despite the potential benefits of closing the tax gap, the Republican approach has been to diminish IRS resources to render it ineffective. This strategy not only aims to reduce government revenue but also shields the wealthiest taxpayers from paying their fair share. The top 5% of earners contribute 53% of the tax gap, while the bottom 70% only account for 15%. Wealthier individuals have complex financial structures that offer opportunities for tax evasion, often facilitated by teams of accountants and tax attorneys.