U.S. Senator Elizabeth Warren has addressed an open letter to Elon Musk, Chair of the Department of Government Efficiency (DOGE), proposing measures to reduce wasteful government spending.
In her Jan. 23 letter, Warren outlined recommendations to fully fund the Internal Revenue Service (IRS), eliminate the carried interest loophole, and impose a capital gains tax on inherited estates. She specifically highlighted the need to target wealthy individuals, citing their role in missed federal revenue opportunities.
The letter was issued on Jan. 23, amid discussions about federal budget efficiency and tax reform.
Warren’s proposals and criticisms were directed toward the DOGE, a federal body tasked with optimizing government processes, and its leadership, headquartered in Washington, D.C.
Warren criticized DOGE policies and leadership, raising concerns about conflicts of interest and ethics compliance. She argued that changes to the tax code, particularly eliminating exemptions like the stepped-up basis for inherited assets, could substantially increase government revenue.
Warren cited past exemptions introduced by Presidents George W. Bush and Donald Trump as significant contributors to reduced federal estate tax revenue. According to her, these exemptions led to a drop in taxable estates, costing the government billions annually. She proposed ending the stepped-up basis for assets transferred at death, which could save over $60 billion annually.
Warren’s letter also expressed concerns about the transparency and integrity of DOGE’s operations. “It is not clear that you and other DOGE leaders are able to identify and mitigate your conflicts of interest and adhere to common-sense ethics standards,” Warren stated.
The proposals have sparked debate over government revenue strategies, especially targeting the ultra-wealthy, such as Musk, whose estimated net worth stands at $426 billion. Warren’s recommendations, if implemented, could reshape tax policy to address perceived inequalities in the federal tax system.
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