D.O.G.E. Aims to Cut $2 Trillion from Federal Spending, Targets IRS
The newly established Department of Government Efficiency (D.O.G.E.) aims to reduce federal agency spending by $2 trillion, targeting several agencies for budget cuts.
Targeting The IRS
Leaders Elon Musk and Vivek Ramaswamy plan significant spending cuts, specifically focusing on the Internal Revenue Service (IRS). Musk stated that the IRS is inefficient and suggested a free tax filing app along with substantial layoffs to address what he considers “administrative overgrowth.”
Musk conducted a poll on X regarding the IRS's request for an additional $20 billion in funding. Results indicated that 60.6% of respondents favored deleting the IRS budget, while 29.9% preferred a decrease.
The IRS just said it wants $20B more money.
Do you think it’s budget should be:
— Elon Musk (@elonmusk) November 27, 2024
Other Agencies In The Crosshair
Musk and Ramaswamy are also scrutinizing budgets of other federal agencies. They propose eliminating the Consumer Financial Protection Bureau (CFPB), and Ramaswamy seeks significant reductions in the Department of Education. Ramaswamy criticized the Department of Defense for wasting approximately $125 billion annually on bureaucracy, although SpaceX’s $3.6 billion defense contract may remain unaffected.
The Role Of D.O.G.E.
D.O.G.E. is designed to improve government efficiency. Its name references Dogecoin, highlighting Musk's influence within the Trump administration. Following Trump's election win, Dogecoin's value surged, attributed to Musk's involvement and past promotion of the cryptocurrency. Discussions about D.O.G.E. at campaign events have reportedly impacted Dogecoin prices, indicating a connection between political developments and the cryptocurrency market.
Featured image from Dimitrios Kambouris/Getty Images for The Met Museum, chart from TradingView