Torsten Sløk, chief economist at Apollo Global Management, has warned of potential massive layoffs in U.S. federal structures that might surpass initial predictions.
Sløk's Layoff Prediction
According to Sløk, layoffs in federal structures could impact up to one million jobs due to cuts in government contracts and grants. This view is based on the assumption that for each federal worker, there are two contractors.
Impact on Taxes and Refund Season
Layoffs at the Internal Revenue Service (IRS) could lead to significant delays in tax filing and refund processing. According to USA Today, the number of filed returns has decreased by 7.7% compared to last year.
CFPB Defunding
The Trump administration announced plans to dismantle the Consumer Financial Protection Bureau (CFPB), potentially leading to the complete shutdown of the agency and the cancellation of existing regulations.
Efforts to reduce government spending may cause significant changes in the U.S. economic and social framework, including rising unemployment and a reduction in public services.
