Treasury Secretary Scott Bessent recently highlighted some economic successes since President Donald Trump began his second term, particularly noting a significant drop in mortgage rates. Bessent appeared on "Fox & Friends" to discuss these developments and the Treasury Department’s plans to appoint a new ‘affordability czar’ aimed at improving housing options for Americans.
In the context of these economic discussions, the Treasury Department is also considering major changes to the Internal Revenue Service (IRS). Reports suggest that up to half of the IRS’s staff, which numbers around 90,000, could face termination as part of a broader effort to streamline operations and cut government spending. A spokesperson for the Treasury stated that while no specific plans have been finalized, modernization is essential to keep pace with how Americans file their taxes, especially since over 90% of tax returns are now filed electronically.
This initiative aligns with the Trump administration’s goal of increasing efficiency and reducing deficits. The spokesperson emphasized that these changes aim to enhance customer service for taxpayers and ensure a seamless filing season.
The IRS has already seen a reduction in its workforce, having let go of approximately 7,000 probationary employees. The administration is reportedly also looking into reassigning some IRS agents to assist with immigration enforcement at the southern border, following a request from the Department of Homeland Security. President Trump has previously suggested that IRS agents could be moved to the border to help with immigration issues, citing their ability to carry firearms as a reason for this potential shift.
As the tax season approaches, with the deadline for individual income tax returns set for April 15, the IRS is under pressure to adapt and improve its services. The Treasury’s efforts to streamline the agency come at a crucial time, as many Americans prepare to file their taxes.