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Elon Musk has harshly criticized the outdated state of IRS technology, calling its systems incapable of passing basic audits. Suggesting blockchain as a solution, Musk highlights the need for modernizing government infrastructure to ensure transparency and efficiency.
Elon Musk Takes Aim at IRS Systems
As of late, Elon Musk—the de facto leader of the "Department of Government Efficiency" under US President-elect Donald Trump—has revealed his desired position within the incoming administration: that of a volunteer information technology consultant.
The remarks were made by the tech billionaire as part of a harsh criticism of the US government's computer systems that was published on X.com, the site that Musk owns.
The federal government's software and computers "are in such bad shape that they often cannot verify that payments are not fraud, waste or abuse," claims Musk.
“That’s why the government can’t pass basic audits. They often LITERALLY don’t know where your tax dollars went. It’s insane.”
Musk addressed the concerns raised in the comments and inquiries to his initial post, Cointelegraph shares.
Outdated Systems and Overpriced Software
While "some of it is intentional," he said, the majority of the antiquated hardware and software is "a natural consequence of a vast bureaucracy with no accountability for results." He went on to say that the US government "is actually massively overpaying for software that doesn't work." "It would be easy to reverse if it were mostly intentional," he noted.
Noteworthy, perhaps, was Musk's claim that IRS machinery was supposedly decades old:
"I wish. Unfortunately, it's much worse than that," Musk replied in response to a user who joked that the machines in the image were IRS computers and uploaded a picture of what looks like laptops from the early to mid-1990s with a monitor showing the Windows 98 starting screen.
IRS Tech Reflects Broader Government Neglect
Although Musk may have meant the admission in joke, it fits with his general tone that suggests the United States, despite being one of the wealthiest nations in the world, has neglected to adequately maintain and modernize key infrastructure.
But Musk has made it clear that his evaluation isn't always driven by politics in his remarks. Instead of pointing fingers, Musk hinted that bureaucratic entrenchment, not deliberate mismanagement, was to blame in his posts.
Blockchain as a Solution for Transparency
Therefore, Musk may seek a non-partisan approach to promote government transparency and technological progress; blockchain technology may be the ideal tool for this purpose.
Already in its campaign promises, the Trump administration wants to establish the United States as the unofficial world leader in blockchain technology and cryptocurrencies. The most fundamental application of blockchain technology is as an immutable record, as many industry insiders have already noted.
The federal government may guarantee the existence of a permanent record of every transaction it conducts by using a core IT stack built on blockchain. Massive audits might be conducted in this way, leading to complete openness regarding the distribution and use of tax funds.
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