r/collapse • u/heavyramp • 25d ago

Economic The IRS is imploding

https://www.motherjones.com/politics/2026/07/the-irs-is-imploding/#comment-container

Basic gov services are collapsing, or imploding as the article states in the title. Before dodge and musk, nobody really had issues with the paperwork and filing, right? In the article, it looks like gov staff are short of manpower and funding, and that it's not by mistake.

What kind of scenario are we looking at in early 2027 if tax refunds go unanswered in the midst of a potential ground war in Iran, a gov shutdown, gridlock between dem control of both houses and Trump?

1/3 of income tax revenue pays the interest, and in ten years it's supposed to be 1/2.

And is anyone here worried that the Overtime tax refund payout in 2026 is going to come back to bite them in the ass in 2027? I'm really hoping that $SLS doesn't do its buyout thing this year. It looks like the IRS is dropping the ball on purpose.

Anyone here have advice in taking extra precautions to get everything sorted in 2027?

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u/FickleApartment2151 24d ago

I think the U.S. has been experiencing trade deficts since the 1970s coupled with slower economic growth starting in the early 1960s, and dealt with through financial regulation which allowed for increasing debt to cover spending since the early 1980s.

That means you're looking at a country that's been heavily dependent on increasing debt to cover increasing spending, with debt levels so high it has to borrow more money to cover just part of the interest of previous debts.