Over the last decade, audit rates have fallen most for the very richest Americans.
The result?
Less tax revenue and a more unequal tax system.
My latest in @bopinion
bloomberg.com/opinion/articl…
A thread:
The result?
Less tax revenue and a more unequal tax system.
My latest in @bopinion
bloomberg.com/opinion/articl…
A thread:
IRS has been gutted in the last decade, the result of a partisan attack on the agency.
Budget is down 15% in real terms, workforce down 20%
Attrition highest for revenue agents capable of examining complex returns of the wealthy--like @realDonaldTrump
Budget is down 15% in real terms, workforce down 20%
Attrition highest for revenue agents capable of examining complex returns of the wealthy--like @realDonaldTrump
Unsurprisingly, strapped for resources, IRS has been forced to pull back from examination scrutiny
Audit rates for those making $10M+ annually are down nearly 80%
EITC recipients less than half that!
Audit rates for those making $10M+ annually are down nearly 80%
EITC recipients less than half that!
This makes no sense.
Wealthy are disprop responsible for tax gap:
Top 1% responsible for at least 30% of unpaid taxes
For vivid ex, consider Robert Brockman, who allegedly evaded $2B in taxes!
(relying on a program called..."Evidence Eliminator")
ft.com/content/8338fc…
Wealthy are disprop responsible for tax gap:
Top 1% responsible for at least 30% of unpaid taxes
For vivid ex, consider Robert Brockman, who allegedly evaded $2B in taxes!
(relying on a program called..."Evidence Eliminator")
ft.com/content/8338fc…
Why the inequitable approach?
It's no fault of the IRS -- it simply lacks resources it needs to scrutinize high-end, complex returns.
Commissioner Rettig is explicit:
IRS needs $ to hire and train agents to ensure "appropriately balanced coverage across all income levels"
It's no fault of the IRS -- it simply lacks resources it needs to scrutinize high-end, complex returns.
Commissioner Rettig is explicit:
IRS needs $ to hire and train agents to ensure "appropriately balanced coverage across all income levels"
Work I've done with @LHSummers estimates $1T+ can be raised by robust attack on tax gap.
Former IRS Commissioner Rossotti suggests more, around $1.6T
But tackling noncompliance is not just about revenue-raising
nber.org/papers/w26475
Former IRS Commissioner Rossotti suggests more, around $1.6T
But tackling noncompliance is not just about revenue-raising
nber.org/papers/w26475
It's about ending two-tiered tax system
Where the $ skirt the laws and get away w/ it
And yet highest audit rates reserved for low-income, minority communities
This inequity is yet another "casualty of being Black and poor" in US
One we must address
npr.org/2020/10/19/925…
Where the $ skirt the laws and get away w/ it
And yet highest audit rates reserved for low-income, minority communities
This inequity is yet another "casualty of being Black and poor" in US
One we must address
npr.org/2020/10/19/925…
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