Catherine Rampell's WP blog examines the question of how much tax cheating is taking place and how much federal revenue might change if the problem were addressed. Studies show that the feds collect about 84 cents of every dollar legally owed. If the IRS were able to collect all taxes legally owed, it would collect an additional $600b, which is larger than the federal budget deficit of $590b.
Rampell recommends simplifying the tax code and increasing the IRS budget for enforcement and customer service. It will not result in 100% compliance, but would get us closer to that goal.
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What's going on with inflation?
2 years ago
Hello Everybody,
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