Trump Proposes Cutting IRS Agents, Reassigning Them to Border

Donald Trump’s proposal to discharge IRS agents and move them to the border raises questions about the future of tax collection in America.

Key Takeaways

Trump proposes moving nearly 90,000 IRS agents to the U.S.-Mexico border.
The plan could significantly impact tax collection and federal revenue.
Trump suggests replacing income tax with tariffs on foreign goods.
The proposal aligns with Trump’s broader immigration and trade reform agenda.
Critics argue the move could lead to increased tax evasion and reduced government funding.

Trump’s Bold Proposal for IRS Agents

In a recent rally in Las Vegas, President Donald Trump unveiled a controversial plan regarding the Internal Revenue Service (IRS). Trump proposed either terminating or relocating nearly 90,000 IRS agents to the U.S.-Mexico border, a move that could dramatically reshape the landscape of tax collection in America.

Trump’s proposal targets the agents hired under the Biden administration’s $80 billion IRS funding boost, which was part of the 2022 Inflation Reduction Act. This funding was intended to improve tax collection efficiency and close the tax gap over the next decade.

Potential Implications for Tax Collection

The president’s plan has raised concerns about its potential impact on federal revenue and the government’s ability to fund crucial programs. Experts warn that reducing the IRS workforce could lead to higher rates of tax evasion and a significant decrease in tax collection.

“On day one, I immediately halted the hiring of any new IRS agents. They hired, or tried to hire, 88,000 new workers to go after you. And we’re in the process of developing a plan to either terminate all of them or maybe we’ll move them to the border. And I think we’re going to move them to the border.” – Trump

Trump’s suggestion to move IRS agents to the border aligns with his longstanding focus on immigration control. He argues that some IRS agents are already permitted to carry firearms, making them suitable for border patrol duties. However, critics point out that tax collection and border security require vastly different skill sets and training.

A Shift Towards Tariffs

In addition to restructuring the IRS, Trump floated the idea of eliminating income tax entirely and replacing it with tariffs on foreign goods. He cited historical precedent, noting that the United States relied heavily on tariffs for revenue from 1870 to 1913.

“How about just no tax, You could do that. You know if the tariffs work out like I think, a thing like that could happen, if you want to know the truth.” – Trump

This proposed shift towards tariff-based revenue aligns with Trump’s broader “America First” trade policies. He suggested imposing tariffs of 10% to 20% on all foreign goods and up to 60% on Chinese imports. Trump also threatened to levy a 25% tariff on Mexico and Canada if they don’t comply with his immigration policies.

Potential Economic Consequences

While Trump’s proposals may appeal to his base, economists warn of potential negative consequences. Drastically reducing the IRS workforce could lead to a significant drop in tax revenue, potentially impacting essential government programs like Social Security and healthcare.

Moreover, a heavy reliance on tariffs could lead to increased consumer prices and potential trade wars, which could harm American businesses and consumers. The proposed changes would represent a fundamental shift in U.S. fiscal policy, the effects of which are difficult to predict accurately.

Political Implications

Trump’s proposals have reignited the debate over the role and size of the IRS. Republicans have long viewed the agency as bloated and adversarial, while Democrats argue that a well-funded IRS is crucial for fair tax collection and reducing the deficit.

The debate over tax policy, border security, and the role of government agencies promises to be a central issue as Trump’s second administration gains steam.