Elon Musk’s D.O.G.E Plans to Axe 20% of IRS Staff

The Department of Government Efficiency (D.O.G.E) is reportedly planning a 20% reduction in the Internal Revenue Service’s (IRS) workforce, affecting approximately 6,800 employees, with the changes expected by 15 May 2025.

This follows the earlier removal of 6,700 probationary workers and 4,700 IRS agents who received retirement severance packages.

However, a recent ruling by US District Judge William Alsup, which mandates the reinstatement of probationary employees terminated under D.O.G.E’s cost-cutting initiatives, could potentially delay or complicate these layoffs, depending on whether the ruling stands.

President Donald Trump has vowed to pursue comprehensive tax reform, which may include eliminating the federal income tax and funding the government solely through tariffs on foreign goods.

D.O.G.E’s Pursuit of Efficient Cost-Cutting

(D.O.G.E), led by Elon Musk, is exploring strategies to reduce the $36 trillion US national debt by significantly downsizing the federal bureaucracy and implementing cost-cutting reforms.

One notable proposal includes placing all public spending on the blockchain to enhance transparency and reduce deficits.

On 21 February, the Securities and Exchange Commission (SEC) announced plans to cut its regional office directors in alignment with cost-saving directives from the Trump administration.

Despite these cuts, the regional offices across major US cities will remain operational, and the SEC has submitted a 2025 budget proposal to Congress requesting $2.6 billion.

Both President Trump and Musk have discussed redirecting 20% of D.O.G.E's savings to Americans through stimulus checks or tax credits.

Research from accounting automation firm Dancing Numbers suggests that Trump's plan to eliminate the federal income tax could save the average American $134,809 in lifetime taxes, potentially rising to $325,561 if state-level wage taxes are also repealed.

Not Everyone is Pro-Trump/Musk/D.O.G.E

Despite these efforts, not everyone is persuaded by D.O.G.E’s cost-cutting approach, particularly US Senator Elizabeth Warren.

A vocal critic of Musk, Trump, and D.O.G.E, Warren expressed her concerns in January 2025.

In a letter to DOGE, she proposed increasing taxes and federal spending as a means to improve government efficiency, offering a stark contrast to the organisation's cost-reduction strategy.