By the numbers: U.S. loses more tax revenue than any nation

[riversedge]

Graph at link.


May 16, 2021 - Politics & Policy
By the numbers: U.S. loses more tax revenue than any nation

https://www.axios.com/us-tax-evasion-loss-enforcement-biden-0e5db526-cd87-421b-b979-b86fc423f88d.html


Stef W. Kight

Data: Tax Justice Network; Chart: Michelle McGhee/Axios

The Biden White House wants to invest in tax enforcement to help pay for its infrastructure plan and social spending, saying it could bring the federal government about $700 billion in 10 years.

By the numbers: There’s some dispute over the exact amount of money the U.S. government loses because of tax evasion —but it’s decidedly a lot. One report by the Tax Justice Network found the country loses more taxes each year than any other nation, although the amount equates to about 6% of its public health budget.

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[Hoyt]

1. Definitely worth going after, but that's barely 1 month of Federal deficit.

Measured tax increases are necessary, soon.

[jimfields33]

2. I wish they'd do a study on how much they'd get if they taxed everyone 10 percent

Including all workers, corporations, non profits, churches. No deductions. Just straight up 10 percent. Just to see how much it would be. I think it’d be an interesting study.

[Hoyt]

3. Would like to see a comprehensive study of any number of tax solutions.

Also a 20 year budget — recognizing changes will be needed — needs to be developed with tax rates set to pay for it and some reasonable deficit reduction.

Won’t happen, and we’ll be debating taxes in 20 years in a worse budget and services situation.

[mac2766]

4. Keep in mind...

10% of $20,000 is $2,000 - leaving only $18,000 for the wage earner. 10% of $10,000,000 is $1,000,000 dollars - leaving $9,000,000 for the wage earner. Of the remainder, the percentage of remaining wages that is put back into the economy from the lower wage earner is almost always going to be 100%, while the percentage of remaining wages that is put back into the economy from the lower wage earner is much much less. Meaning that a flat tax is felt more dramatically by the low wage earner. Along with gas taxes, sin taxes, healthcare costs, etc, etc...

Also keep in mind that those who earn more take a much greater advantage of the facilities and infrastructure that is paid for with public money, meaning that they see a much greater benefit coming from the public funds raised in the form of taxes. Like roads and bridges being used by their employees, transport/delivery trucks, air freight vehicles, etc.

What I would like to see is a breakdown of the actual benefits being taken advantage of by different wage earning categories, as well as a breakdown of the over-all taxation of the American wage earner - to include every tax on income. Especially health care costs.

I'm okay with the poor and middle-class paying for infrastructure and for the services being taken advantage of by the wealthy, as long as the wealthy are willing to actually start providing proper wages and benefits to the very people who are allowing them to amass such great wealth. Or... start taxing the hell out of the rich.

[jimfields33]

5. Very good points.

That 2,000 for a person making 20,000 looks extremely unreasonable on paper and in real life. But I’d still like a study just to see how much revenue we’d have. After the total is realized then we can shift percentages to the top from the bottom. I’d like the poor to pay a half percent. The rich can absorb the 9.5 percent from the poor. Obviously this will never happen but I’d love to see the numbers.