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In a major move to reduce the size of the federal workforce, the Trump administration is set to eliminate more than 11,000 jobs across two key government agencies: the Internal Revenue Service (IRS) and the Pentagon. This decision aligns with the administration’s goal to streamline government operations and reduce spending.

IRS Cuts: 6,000 Jobs Amid Tax Season

The IRS, responsible for overseeing tax collection in the United States, began laying off around 6,000 employees on Thursday, just as millions of Americans are in the midst of filing their tax returns. The timing of the cuts has drawn criticism, given that tax season is one of the busiest periods for the agency.

Reports suggest that the majority of those being laid off are probationary employees. Officials indicated that these workers were deemed “not critical” to the ongoing tax season. These job cuts come at a time when many Americans are looking for assistance with filing their taxes, and experts warn that the layoffs could exacerbate delays and frustrations for taxpayers.

Impact on Small Business Division

The layoffs at the IRS will disproportionately affect the Small Business/Self-Employed (SBSE) Division, which plays a key role in ensuring that small businesses and self-employed individuals comply with tax laws. SBSE Commissioner Lia Colbert confirmed that over 3,500 probationary workers in this division would lose their jobs by the end of the week. Many of these workers were involved in compliance efforts to ensure taxpayers meet their obligations.

The IRS employed approximately 83,000 people in the 2023 fiscal year. The recent job cuts will significantly reduce its workforce, with compliance roles being particularly hard-hit. Harvard Kennedy School professor Linda Bilmes commented on the potential fallout of the layoffs, stating, “People dislike paying taxes, but they hate struggling to get help even more.” This sentiment reflects the challenges that taxpayers could face as the IRS reduces its capacity to provide assistance.

Pentagon Cuts: Reducing Civilian Workforce by Thousands

In addition to the IRS layoffs, the Pentagon has announced plans to reduce its civilian workforce by over 5,000 jobs, or roughly 5 to 8% of its civilian personnel. The department, which employs nearly one million civilians, is aiming to streamline its operations to improve efficiency and focus on the military’s core priorities.

Defense Secretary Pete Hegseth has expressed strong support for the cuts. Last week, he posted on X (formerly Twitter) that the Pentagon must “cut the fat (HQ) and grow the muscle (warfighters).” Hegseth’s statement underscores the administration’s focus on trimming unnecessary bureaucracy while ensuring the military remains ready for combat.

The Pentagon plans to begin the layoffs next week, with the vast majority of the cuts impacting probationary employees. These job reductions come as part of a broader initiative to address concerns over the size and efficiency of the federal workforce. While some employees may be let go, the department will also enact a hiring freeze, which could lead to further job reductions in the future.

A Shift in Policy: Abolishing the IRS?

This move to cut jobs at the IRS comes as the Trump administration continues to pursue its goal of reducing the scope of federal agencies. Commerce Secretary Howard Lutnick suggested that the administration’s long-term vision involves eliminating the IRS altogether. He pointed out that Trump’s preference is for an “External Revenue Service” that would be funded through tariffs on foreign imports instead of relying on taxes levied on American citizens.

This proposal has garnered both support and criticism. Supporters argue that it would simplify the tax system and reduce the burden on Americans. However, opponents warn that the shift would lead to decreased government revenue and greater challenges in managing public services.

Public Reaction to Federal Workforce Reductions

Public opinion on the Trump administration’s decision to cut federal jobs is mixed. A Washington Post/Ipsos survey found that 54% of Americans disapprove of Trump’s handling of the federal government, while 44% approve. Critics of the job cuts argue that reducing the size of the workforce could lead to slower services, particularly at the IRS, where millions of Americans rely on timely assistance during tax season.

However, supporters of the cuts view them as a necessary step toward reducing government waste and increasing efficiency. They argue that the federal workforce has grown too large and that significant reductions are needed to ensure taxpayer dollars are spent more effectively.

The Path Forward for Federal Agencies

The job cuts at the IRS and Pentagon are part of a broader strategy by the Trump administration to reduce the size of the federal government. While these layoffs may save money in the short term, critics warn that they could have long-term consequences for services that Americans rely on. The IRS, for instance, may struggle to provide the level of service needed during tax season, while the Pentagon’s efficiency goals may be harder to achieve without the necessary civilian personnel.

As the layoffs unfold, it remains to be seen whether these cuts will have the desired effect of improving efficiency or whether they will lead to greater public frustration with government services. Regardless, the move signals a continued shift toward a leaner federal workforce, with both potential benefits and risks.

For more updates on U.S. government policies and their economic impact, visit Financial Mirror.