The incoming head of the newly created Department of Government Efficiency (DOGE) laid out an ambitious plan to cut $2 trillion from federal agency spending and targeted several agencies for across-the-board budget cuts.
One of DOGE’s leaders, Tesla CEO Elon Musk, has said his goal is to reduce federal government spending on the Internal Revenue Service (IRS).
Targeting the IRS
The dynamic duo of Musk and Vivek Ramaswamy have vowed to cut spending at federal agencies, with the goal of slashing $2 trillion from the federal budget.
DOGE leaders say they will make budget cuts to federal agencies they consider bloated or outdated.
Musk said one of those government agencies is the IRS. "The IRS is a mess," he said.
Tesla's CEO noted that the IRS has been plagued by inefficiencies and scandals for years and suggested launching a free tax filing app and conducting audits.
He also wants to cut a lot of staff to reduce what he sees as "administrative overreach."
In a poll on X, Musk asked netizens what the budget for the IRS should be. The federal agency is requesting an additional $20 billion.
The IRS just said it needs an additional $20 billion.
What do you think its budget should be:
— Elon Musk, November 27, 2024
"The IRS just said it wants an increase of $20 billion. What do you think its budget should be: increase, stay the same, decrease, eliminate," he said.
The poll results showed that 60.6% of respondents wanted to delete the IRS budget, while 29.9% voted in favor of reducing the budget.
Meanwhile, 5.6% said they favored an increase in the budget, while 3.9% agreed that the budget should remain the same.
Other institutions also struggled
Musk and Vivek are considering reviewing the budgets of multiple federal agencies in an effort to cut government spending.
The two also took aim at another agency that oversees financial practices, the Consumer Financial Protection Bureau (CFPB).
Musk’s suggestion to eliminate the Consumer Financial Protection Bureau (CFPB) has raised concerns about the agency’s future.
For his part, Vivek wants "massive layoffs" at the Department of Education. President-elect Donald Trump has called for years to dismantle the Department of Education, and it looks like his return to the White House will make that happen.
Vivek considers cutting defence budget
Vivek also harshly criticized the Defense Department's massive budget, saying the Pentagon wastes about $125 billion a year on bureaucracy.
However, Musk's SpaceX's $3.6 billion defense contract appears to be unaffected by DOGE's budget cuts
Some critics argue that DOGE’s functions overlap with other existing agencies, claiming that the government efficiency unit may simply be redundant.
The role of DOGE
DOGE is designed to make the work of the government easier. The name is a reference to Dogecoin, which shows Musk's importance in the Trump administration. Musk's role in the department makes people wonder how this will affect the value and reputation of Dogecoin in the market.
Dogecoin’s value surged after Trump won the election. This is because Musk is working with the new administration and has a history of promoting the cryptocurrency.
Reportedly, talking about Dogecoin at campaign meetings led to a rise in the price of Dogecoin. This suggests a direct link between political events and how the memecoin market reacts to them.
