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There is a pattern across all agencies where IT “modernization” contracts do not pay for outcomes/performance; instead, they pay for time. Therefore, the incentive is for contractors to “never finish,” resulting in incredible waste. As an example, IRS modernization started in 1990 to be delivered in 1996. Today, the... show more
2,352,657 views • 1 year ago •via X (Twitter)
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The IRS has the transaction volume of a mid-sized bank, running similar infrastructure. Those banks typically have an Operations and Maintenance (O&M) budget of ~$20M/yr. The IRS has a ~$3.5B O&M budget (which doesn’t include an additional $3.7B modernization budget). ~80% of that O&M budget goes to contractors.
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“The worst disease in the world today is corruption, and there is a cure: transparency. DOGE is Doing that without rest.” — Elon Musk
It is theft. Plain and simple. We can’t keep calling it waste or fraud or abuse. This is being done purposely by those at the top. It’s criminal.
This is one of the downsides to the public sector: competition is what breeds innovation, and in government there IS no competition. That, and you're spending other people's money instead of your own. It's a real recipe for disaster.
The IRS modernization debacle is a textbook example of why D.C.’s contracting system is broken. Paying contractors by the hour instead of demanding results creates perverse incentives to drag out projects indefinitely. The fact that a 1990s-era upgrade is still unfinished—29 years behind schedule and $15B over budget—proves the system rewards failure, not efficiency. This rot isn’t isolated. The GAO’s High-Risk List has flagged federal IT systems for decades, with agencies like the Pentagon wasting billions on outdated tech. The Billion Dollar Boondoggle Act of 2025 would force transparency on these delayed, overbudget projects, but real change requires overhauling the entire contracting model. Performance-based pay isn’t radical—it’s basic accountability. Freezing $1.5B in IRS contracts is a start, but the real fix is structural: tie every dollar to measurable outcomes, claw back funds for missed deadlines, and blacklist repeat offenders. Until D.C. stops treating taxpayer money like a blank check for contractors, these boondoggles will keep draining billions.
Exactly
The White House is unable to track $6.2 billion dollars sent to Ukraine. California is unable to track $24 billion dollars to combat homelessness. The Pentagon is unable to track $2.3 trillion dollars of military spending. The U.S. Treasury is unable to track $5 trillion dollars of pandemic spending. How much untracked spending would an audit uncover in Massachusetts? Somebody's getting rich. Just not any of us.
Abolish The IRS
Democrats are hypocrites.
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![MORE - DOGE Staffer Drops Bombshell After Bombshell About Inner Workings of IRS/Treasury Dept. DOGE insider Sam Corcos, special adviser to the U.S. Treasury Department, just unloaded a jaw-dropping exposé on the IRS and Treasury’s chaotic operations. He’s pulling the mask off, and it’s wild. 1]. IRS’ Massive IT Dept. Outstrips Midsize Banks by 175x Budget and 40x Staff “A typical midsize bank will have somewhere between 1 and 200 people in IT and they have an operations and maintenance budget in like the $20 million a year range. We have 8,000 people in IT, and our operations and maintenance budget is $3.5 billion a year. I don’t really know why yet.” 2]. Contractors Eat Up 80% of IRS’ Massive Operations Budget “I will tell that you 80% of that budget goes to contractors and licenses——We cannot perform the basic functions of tax collection without paying a toll to all these contractors.” 3]. IRS’ Modernization Is a $3.7 Billion Money Pit “We have a $3.5 billion operations maintenance budget. We have $3.7 billion modernization effort within it. That’s a lot of budget and way beyond any reasonable cost for what you would expect at a private company for this.” 4]. Ghost Contracts Bleed Millions With No Accountability “You find contracts that are 10, 20, 30, $50 million and you just ask like, why are we doing this? And everyone’s just like, meh, I don’t know. And then you cancel it and then nothing happens. It’s just inertia, has just taken over.”](https://image.24vids.com/tw-1902908276662210592/ext_tw_video_thumb/1902901805648146432/pu/img/Jz6oYrCQa5rpJKa8.jpg)
