Government bond yields are hitting multi-decade highs, reflecting anxiety about debt levels, deficits and inflation. The effects will extend to mortgages, business loans and other types of credit.
Page F3From§Eachthe supper edition — 1 September 2026
IRS audit revenue falls as bond sell-off squeezes borrowers
IRS audit revenue plummeted following workforce reductions, as reported by CBS News. At the same time, global borrowers are facing mounting pressure from a bond sell-off, driven by inflation and debt fears (The New York Times, The Hill). The numbers show a clear sequence: fewer auditors, fewer audits, less revenue recovered. The bond market's volatility means borrowing costs for everyone are rising, but the gap is clearest for middle-income Americans—who rely on stable credit and fair enforcement. Audits used to recoup billions yearly; now, with staff cuts, the ledger shrinks, and the pressure lands on borrowers instead. The receipts point to a familiar gap: money for enforcement dries up, and so does accountability, while the financial squeeze intensifies for those without leverage. Hon, the math's right here: if you cut the IRS workforce, audit revenue falls, and bond markets punish the same crowd. Who benefits from that gap?
“They cut IRS staff so audits dried up, and now the bond market's tanking means regular folks get squeezed while the rich skate. The scam is always the same: the money gets tight for you, but loose for them.”
“It's important to note that workforce reductions were necessary for efficiency, and the bond market moves with global trends, not policy. If audit revenue dips, that just means we're focusing on the big fish—wait, the report says the opposite, doesn't it? Well, the economy cycles, that's not our fault.”
The receipts
Welcome to The Hill's Business & Economy newsletter {beacon} Business & Economy Business & Economy The Big Story Bond sell-off soars amid inflation, debt fears Government bond yields rose in numerous countries on Tuesday, with investors selling off amid concerns over inflation and mounting public debts. © Yuki Iwamura, Associated Press…
IRS audits collected $3.5 billion less in fiscal 2025 as the agency shed thousands of auditors and other agency staffers.
This page is a back-issue: the story as it ran, receipts as they were. The current edition is at the front.