11/07/2025
The IRS is currently operating at reduced capacity, with its public call centers and many core functions suspended. Employees will receive back pay upon resumption of operations, effectively subsidizing prolonged periods of inactivity with taxpayer funds. This will create significant delays as the IRS works to recover. Currently it is operating at about half staffing.
Government shutdowns impose severe economic costs. The 35-day shutdown in January 2019 cost the economy $11 billion in output and resulted in $3 billion in permanently lost tax revenue. The ongoing shutdown—now exceeding that duration—arises from disputes over expanding healthcare subsidies. While healthcare affordability is an important issue, medical spending reached $1.6 trillion in 2024, nearly a quarter of the federal budget. Closing the government weakens its ability to function and is not a viable solution.
If shutdowns become routine, the nation will suffer. The federal budget approximates $7 trillion annually, including $1 trillion in interest payments and $2 trillion in new borrowing, against a national debt nearing $39 trillion. Compensating idle workers for weeks or months represents fiscal irresponsibility; the IRS closure alone will impose significant economic costs.
Democrats have initiated the current shutdown, just as Republicans did in 2019 over border policy. All parties must cease using government closures as leverage when dissatisfied with political outcomes.
Time to get the IRS and government back open!