Expert Warns: US Faces Deep Trouble Ahead

In the tangled web of federal bureaucracy, there’s always a head-scratching story lurking. This time, it comes from none other than the IRS, where modernization seems to be stuck in a perpetual cycle of delays and ballooning costs. The so-called modernization program for the IRS, which kicked off over 30 years ago, was supposed to bring the agency into the modern age but has somehow managed to defy all laws of time and space. Instead of a sleek, efficient system, we’re left with mainframes so ancient they probably belong in a museum.

Enter Sam Cork Coast, a special adviser from the Treasury Department who was tasked with the monumental job of sorting out this mess. With a background in software development and running a successful tech company, he was disturbingly surprised at the archaic state of affairs in the IRS infrastructure. It’s like stepping into a time capsule that hasn’t seen any signs of technological advancement since the 90s, he says. Yet, even with a massive $3.5 billion-a-year budget for operations, the agency struggles to keep afloat.

In the midst of this saga, Cork Coast and Treasury Secretary Scott Bessent seem determined to untangle the snarled mess of IRS systems. They reveal that a large chunk of the budget is eaten up by contractors and licenses. Apparently, about 80% of it goes to outside help, a staggering figure that would make any taxpayer clutch their wallet tighter. The talk about constricting consultant groups being likened to a python squeezing the lifeblood out of the system adds a layer of humor to an otherwise grim situation. After all, who doesn’t love a snake metaphor when discussing government inefficiency?

The size and inefficiency of this operation are mind-boggling when compared to a mid-size bank, which processes a similar amount of data with far fewer resources. It’s no wonder the rhetoric around efficiency is taking center stage. Sam and his “DOGE crew,” as they’re humorously called, seem to have a straightforward goal: make the IRS work better, faster, and cheaper without losing sight of privacy. A simple enough idea that somehow gets scrambled when run through the bureaucratic blender.

Meanwhile, the pushback from the usual suspects is expected. The naysayers, entrenched interests, and perhaps even some media outlets seem eager to watch these reforms fizzle out like a damp firecracker. If anything, the story of the IRS’s journey to modernization is a cautionary tale of what happens when inertia takes hold and inefficiency becomes the norm. Sam Cork Coast and Scott Bessent know they are up against a beast, yet they continue to wield their metaphorical swords, hoping to usher in an era of government efficiency. Well, one can only hope.

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Keith Jacobs

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