Now that MAGA policies have has some time to take effect, it's time for an initial periodical cost-benefit assessment. Of course "cost-benefit" is a contested concept. One can reasonably ask, 'cost and benefit to who or what', economic, social, businesses, religion, democracy, rule of law, truth, etc.? What some might see as cost or damage, others might see as benefit. To cut through that complexity and limit bias, the assessment is transparent.
Free online tax filing eliminated
The Trump administration may have just axed the IRS Direct File program. During a summit earlier this week, IRS Commissioner Billy Long said the free tax filing service is “gone,” adding that “big beautiful Billy wiped that out. I don’t care about Direct File. I care about direct audit.” as reported earlier by Bloomberg Law.
President Donald Trump’s Big Beautiful Bill includes a provision to establish a task force dedicated to “the replacement of Direct File.” The IRS first announced Direct File in 2023, which lets taxpayers submit their tax returns directly to the government for free. It began testing the program in select states during last year’s tax season, and planned on expanding it this year.
Direct File was started by the Biden administration in 2024 as a pilot program in 12 states, expanding to 25 states for the 2025 tax season
. The program served approximately 140,803 taxpayers during its 2024 pilot, with over 300,000 Americans using the service in 2025
.
User satisfaction was exceptionally high, with 90% of participants rating their experience as "Excellent" or "Above Average" in IRS surveys
.
Impacts: One estimate indicates that Direct File would have (1) saved Americans about $11 billion annually in filing fees and time costs once fully implemented and (2), delivered about $5-12 billion annually in currently unclaimed federal tax credits by making filing accessible to low-income families. The total public impact on taxpayers is estimated to be about $19 billion/year
. The annual return on tax prep industry lobbying investment is projected to be ~$4 billion for Intuit, ~$2.3 billion for H&R Block, with a total industry impact of about $11.5 billion in annual added revenues. The tax industry spends about $7 million annually lobbying, giving an estimated return on investment of ~1,646:1, thus for every $1 spent lobbying, ~$1,646 in industry revenue is protected.
Financial sector deregulation
The Trump administration is reducing capital requirements for major banks. This includes relaxing the enhanced supplementary leverage ratio (eSLR) that requires megabanks to maintain at least $5 of their own money for every $95 of borrowed money used for investments
. This deregulation fundamentally shifts power from public oversight to financial institutions, increasing risk of another 2008-style financial meltdown.
Financial institutions and their shareholders are projected to benefit by at least ~$22.3 billion/year estimated for increased profit (conservative estimate (10% ROE): $22.3 billion, aggressive estimate (15% ROE): $33.5 billion).
Also there is
the cost of the Too-Big-To-Fail Subsidy Restoration, estimated at ~$42 billion annually. The eSLR reduction effectively restores the implicit government guarantee that "living wills" regulation had reduced. Research shows this subsidy was worth $42 billion annually before Dodd-Frank
. There is the Deposit Insurance Fund Risk: $5 billion annual cost because lower capital requirements increase the probability that the FDIC will face losses when banks fail, effectively transferring risk to taxpayers who backstop the deposit insurance system. and finally, there is the cost of "moral hazard" estimated to be ~$10 billion annually.
In general banking deregulation will increase consumer costs through higher fees and reduced lending benefits. Total private benefits to banks is estimated at ~$29.3 billion annually, public costs and risks is estimated at ~ $57.8 billion annually and net social cost is estimated at ~ $28.5 billion annually. Together, the wealth transfer ratio is about 0.51:1, meaning for every dollar of benefit banks receive, taxpayers bear $1.97 in costs and risks.
Gutting of the CFPB (Consumer Finance Protection Bureau) has cost Americans at least $18 billion by one estimate. That includes $15 billion annually from eliminated overdraft and late fee caps plus $3 billion from dismissed enforcement cases. The CFPB has stopped enforcing consumer financial protections laws and enforcement actions, e.g.,
According to orders issued Feb. 8-10, 2025, the CFBP ceased all enforcement actions and investigations, stopped all supervision and examination activities, stopped all consumer engagement with the CFPB, suspended effective dates of all final rules not yet in effect, stopped issuing any proposed or final rules, and ceased all public communications.
Repealed worker protections, repealed environmental regulations
Deregulation shifts power from workers and the public interest, freeing up employers and polluters to maximize profits.
Cost to workers is estimated at ~$4.2 billion annually due to MAGA's overtime protection rollback and other measures.
Environmental deregulation by rollback of power plant pollution standards will cause thousands of deaths and cost up to $130 billion in health costs through 2047
, translating to approximately $5.7 billion annually. Revoking the EPA's endangerment finding eliminates climate protections, leading to increased health damages, extreme weather costs, and economic losses conservatively estimated to be ~$20.7 billion annually. Impacts on quality of life and work are separate matters not included in this assessment.
Q: Is MAGA fleecing the public or rewarding it, or is it unclear?