DOGE cuts to the IRS will cost $500 billion in lost revenue, watchdog finds

Independent

6 hours ago

The so-called Department of Government Efficiency's efforts to bulldoze federal agencies and slash the federal workforce will ultimately cost American taxpayers billions of dollars, according to a watchdog group.
At the Internal Revenue Service, more than 11,000 people were either fired or took buyouts. Just this year, it's estimated that roughly $500 billion in revenue will be lost because of the cuts, according to the report from Citizens for Responsibility and Ethics in Washington.
President Donald Trump established the U.S. DOGE Service by executive order signed on his first day back in office. Elon Musk, the world's wealthiest man, was tapped to steer the group's work, which the White House says is now embedded across every government office.
CREW's analysis found that 50,000 people have lost their jobs due to DOGE cuts to government agencies, which could result in the loss of more than $10 billion in U.S.-based economic activity and the closure of programs that have returned more than $26 billion to taxpayers.
Some of the programs targeted by DOGE aim to protect consumers from fraud, eliminate waste, and prevent the abuse of taxpayer funds — efforts that Musk and administration officials have claimed are at the center of DOGE's work.
Trump has also restricted the work of the offices of inspectors general, which execute audits, investigations, and take action to protect taxpayer funds. They also ensure that agencies work efficiently.
The Independent has requested comment from the White House.
The CFPB, which was founded after the 2008 financial crisis to protect Americans from abusive financial practices, has returned more than $26 billion to Americans since 2011 while operating at a fraction of that amount.
Nearly 1,500 staff members have been cut, including those who have been placed on administrative leave or laid off.
The Trump administration also announced $4 billion in cuts to medical research under the NIH. DOGE cut as many as 20,000 jobs at the Department of Health and Human Services.
CREW calculated that the cuts conducted by DOGE could result in roughly $10 billion in lost economic activity and a loss of roughly 44,000 jobs annually.
The watchdog group also found that DOGE 'disrupted' the federal government's response to the bird flu outbreak, which had already cost more than $1.4 billion.
At the Department of Agriculture, about 5,700 members of staff have been cut, including some who have been put on administrative leave.
Similarly, almost all 10,000 USAID staff were fired, put on indefinite leave, or removed in other ways. Organizations based in the United States are set to lose $28.9 billion from domestic contracts and assistance from the agency.
DOGE closed down the tax division at the Department of Justice, which in one year collected $247 million in revenue lost to fraud and corruption as it enforced U.S. tax laws. Like the CPFB, it costs a fraction of that to run.
'There are well-documented historical, or expected, returns on investment that have been destroyed, diminished or jeopardized by DOGE's work,' the CREW report's authors stated.
'This administration's chaotic and ill-conceived actions resulting in the loss of hundreds of thousands of jobs and billions of dollars will have untold consequences to the American economy and the everyday lives of American families,' the group added.