IRS Bloodbath—Is This Just the Beginning?

The IRS has just been slashed by 25 percent, and while many Americans are cheering, the real question is whether this long-overdue downsizing goes nearly far enough to rein in an out-of-control bureaucracy that’s spent decades squeezing hardworking taxpayers dry.

Story Snapshot

• The IRS workforce dropped from over 103,000 to under 77,000 in just six months, the biggest reduction in decades.
• Republicans in Congress are pushing for even deeper budget cuts, aiming to shrink the agency’s power and footprint further.
• Public frustration with the IRS remains sky-high, fueled by complex tax codes and a government that refuses to cut spending.
• Despite the agency’s shrinkage, the tax code is more complicated than ever, and federal deficits continue soaring past $37 trillion.

IRS Workforce Slashed—But Has Washington Really Learned Anything?

America’s taxpayers woke up in July 2025 to the news that the IRS, perhaps the least-loved federal agency, is now 25 percent smaller than it was just months ago. The cuts, which dropped the IRS workforce from about 103,000 to fewer than 77,000, came after a one-two punch of executive orders from President Trump and a round of congressional budget knives. For those of us who believe the federal government has gotten far too big for its britches, this is the kind of progress we’ve been demanding for years. But let’s not kid ourselves: shrinking the IRS is only the first step. The machinery of government overreach is still alive and kicking, and the tax code remains a tangled mess that punishes honest Americans while rewarding loophole-hunters and big spenders in D.C.

If all we get is a smaller IRS, so be it. But that still leaves an incomprehensible tax code funding an oversized and over-expensive government. https://t.co/I7OpEzXwZQ

— reason (@reason) August 1, 2025

With the House now proposing to slash the IRS’s budget for 2026 from $12.3 billion to $9.5 billion, and enforcement funding nearly cut in half, it’s clear that the appetite for real reform is strong—at least on one side of the aisle. The Senate, meanwhile, is dithering and threatening another government shutdown over these cuts, perfectly illustrating the swamp’s commitment to protecting its own. The National Treasury Employees Union, predictably, is howling about lost jobs and warning of backlogs and slower refunds. But here’s what they don’t admit: the IRS’s own leadership has spent years weaponizing the agency, targeting political opponents, and making life miserable for regular folks trying to navigate their annual financial punishment ritual. If anything, a smaller IRS means fewer bureaucrats snooping into your bank account and less muscle to harass small business owners just trying to stay afloat.

Complexity, Not Just Size, Is the Real IRS Problem

One thing both sides of the aisle should agree on: the IRS is a symptom, not the root cause, of what’s wrong with our tax system. Decades of warnings—going all the way back to Jimmy Carter in the 1970s—have gone unheeded. The tax code grows more labyrinthine every year. The so-called reform bills passed in recent years have only added new breaks, exceptions, and traps for the unwary. The result? Even with a smaller IRS, Americans are still drowning in paperwork and confusion come April. The Taxpayer Advocate Service and policy think tanks have been sounding the alarm for years: without genuine simplification, the IRS will remain a bureaucratic behemoth, no matter how many people you cut from the payroll.

And here’s the real kicker: the government’s insatiable appetite for spending hasn’t slowed one bit. The national debt is barreling toward $37 trillion, and the only thing Congress seems able to do is print more money and pile on more rules. Cutting the IRS is a start, but until Washington gets serious about cutting spending and rewriting the tax code in plain English, taxpayers will keep feeling the pain.

Fewer IRS Agents—But More Frustration for Taxpayers?

The IRS leadership and their union mouthpieces are already laying the groundwork for blame: expect slower refunds, more unanswered calls, and a backlog of unresolved cases. But let’s be honest—when has the IRS ever been known for stellar customer service? For years, taxpayers have endured endless phone wait times, contradictory answers, and bureaucratic runarounds. If anything, a smaller IRS might just mean fewer headaches for the average American, especially if it forces Congress to finally take tax code simplification seriously.

On the other hand, some experts warn that reduced enforcement could open the door to more tax dodging by the wealthy and big corporations. The Tax Policy Center and others point out that a crippled IRS might collect less money, making deficits even worse. But here’s the irony: if the IRS is less able to enforce the law, maybe—just maybe—Congress will finally have to reckon with the monster it created. If politicians really cared about fairness and compliance, they’d start by making the rules understandable for everyone, not just the folks who can afford a team of accountants.

Downsizing the IRS: A Partial Win for Common Sense, a Wake-Up Call for Congress

The new reality is simple: fewer IRS agents mean less power for Washington’s tax enforcers, and that’s a win for taxpayers who’ve been bullied and browbeaten for far too long. But if Congress thinks this is the end of the story, they’re dreaming. The American people are tired of being told to pay more, comply with more, and get less in return. Until lawmakers tackle the real issues—out-of-control spending and a tax code designed to confuse and punish—downsizing the IRS is just the first skirmish in a much bigger war over the size and scope of government.

https://x.com/JD_Tuccille/status/1951304325906702534

The lesson for Washington should be obvious: the days of endless bureaucracy and unchecked IRS power are numbered. Taxpayers have had enough. The challenge now is to prove that a smaller, less dangerous IRS is just the start—not the end—of restoring accountability, simplicity, and respect for the people who actually pay the bills in this country.

Sources:

House Appropriators Propose Substantial Cut in IRS Funding

NTEU Statement on House Appropriations Bill

Trump Wants to Reverse Staffing Cuts He’s Overseen at IRS Customer Service. House Republicans Disagree.

The Trump Administration’s Proposed IRS Cuts Would Declare Open Season for High-End Tax Evasion

Taxpayer Advocate: Rain or Shine, the IRS Must Prepare Now for Next Year’s Filing Season