(RightIsRight.co) – Americans are keeping more of their money as tax revenues are set to plummet by over 10% this year as the IRS faces a potential $500 billion shortfall by the April 15 filing deadline.
This means that more individuals and businesses will not either file or find ways to avoid paying what they owe.
According to a Washington Post report, IRS and Treasury officials are bracing for a significant drop in tax collections compared to last year.
The revenue decline comes after the Trump administration implemented cuts to the bloated tax agency, reducing staff by nearly 20,000 employees and forcing a refocus of priorities.
The IRS collected a staggering $5.1 trillion last year, far exceeding the $825 billion spent on national defense in fiscal 2024.
This potential 10% drop signals that Americans are responding to years of IRS overreach by taking advantage of the agency’s weakened enforcement capabilities.
The revenue decline comes amid significant operational challenges at the IRS. Two commissioners have resigned, and the head of compliance, Heather Maloy, recently stepped down.
IRS reports show a 1.7% decline in tax returns received this year compared to 2024, suggesting many Americans are simply not filing.
Online discussions about not paying taxes or claiming fraudulent credits have increased, as many taxpayers recognize the reduced risk of audit.
With fewer agents available to investigate high-value corporations and wealthy taxpayers, many Americans are calculating that their chances of facing the consequences are minimal.
While the Washington Post article attempts to paint the revenue decline as a negative consequence of IRS cuts, many conservatives see it as a win for the American taxpayer.
The Treasury Department has dismissed the report as “sensational and baseless,” suggesting that Americans are keeping more of their hard-earned money.
The projected revenue shortfall could force the federal government to borrow more, potentially increasing the national debt, which currently stands at $36.2 trillion.
Yet, many fiscal conservatives argue that forcing the government to live within its means might finally bring about the spending discipline Washington has long avoided.
IRS operations have weakened significantly, with fewer callers able to speak to representatives. The agency now employs approximately 90,000 workers across the country, down from its previously bloated workforce.
“Aggressive reductions in the I.R.S.’s resources will only render our government less effective and less efficient in collecting the taxes Congress has imposed,” former IRS commissioners stated.
The drop in tax collections represents a win for the Trump administration’s efforts to rein in the powerful agency that has increasingly targeted ordinary Americans.
With the IRS focused on chasing high-value targets, many middle-class taxpayers are breathing easier this tax season.
Some are even taking advantage of penalty-free six-month filing extensions due to economic uncertainty.
As Americans prepare for the April 15 deadline, the message is clear – with a weakened IRS, more of their hard-earned money is staying in their pockets rather than funding government waste and overreach.
Copyright 2025, RightIsRight.co
