Part 6/10:
Amidst these growing concerns, discussions about efficiency at the Internal Revenue Service (IRS) arise. Proposed cuts, which could lead to staff reductions, could paradoxically contribute to increased deficits. Research suggests that the IRS generates significantly more tax revenue for each dollar spent on its operations—often resulting in a return between $5 and $12 for every dollar invested. Therefore, slashing IRS resources might backfire and lead to diminished tax collection capabilities.