Halving the IRS workforce in the middle of tax season
Marketplace Morning Report
Marketplace
4.5 • 927 Ratings
🗓️ 5 March 2025
⏱️ 7 minutes
🧾️ Download transcript
Summary
The second Trump administration is reportedly working on a plan to dramatically reduce the workforce at the Internal Revenue Service. As much as half of the workers at the tax collecting agency could be let go through a combination of layoffs, buyouts and attrition. Also on this morning’s show: We’ll preview the spring break travel economy and hear why wealth informs how quickly those affected by the Southern California wildfires can rebuild.
Transcript
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| 0:00.0 | shrinking the IRS. From Marketplace, I'm Sabree Beneshore, in for David Brancacchu. The Trump |
| 0:08.4 | administration is reportedly working on a plan to dramatically reduce the workforce at the Internal |
| 0:13.7 | Revenue Service, as much as half the staff, the tax collecting agency, could be let go through a |
| 0:19.3 | combination of layoffs, buyouts, and attrition. |
| 0:21.8 | Marketplaces Nova Saffo has more. |
| 0:24.3 | The IRS employs about 90,000 workers across the country. |
| 0:28.5 | News of a potential halving of that workforce comes in the midst of the busy tax filing season. |
| 0:34.0 | It is an almost unimaginable scenario. |
| 0:37.1 | I think there's no scenario in which it doesn't endanger |
| 0:39.3 | the federal revenue. Vanessa Williamson is a senior fellow at the Urban Brookings Tax Policy Center. |
| 0:45.0 | She says, if these cuts happen, Americans should expect noticeable impacts fairly quickly. |
| 0:50.7 | If you're an honest taxpayer who just wanted your question answered by the IRS, that's going to get a lot harder. |
| 0:55.8 | And if you have a complicated tax situation and fancy lawyers, the IRS is going to be far less able to make sure that you pay your fair share. |
| 1:04.2 | Under the Trump administration, the agency has already faced cuts of some 7,000 probationary employees, according to the Associated Press. |
| 1:11.8 | Meanwhile, the administration yesterday released a list of hundreds of federal buildings |
| 1:15.4 | it wants to close or sell, including an IRS computing center and several service centers. |
| 1:22.2 | I'm Novosafo for Marketplace. |
| 1:24.6 | It is spring break time, which is a busy travel season, as students of many |
| 1:29.8 | ages take a week or two off. But this year, it's coming at a time when people are increasingly |
| 1:34.0 | anxious about the economy and about prices. That's per consumer sentiment surveys. Marketplaces, |
| 1:39.4 | Daniel Ackerman, looked into what that might mean for the leisure and hospitality industry. |
| 1:44.5 | The planner in me shudders to think this, but a lot of people right now still haven't decided |
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