Stopping Tax Evasion Would Add $4 Trillion to Federal Coffers - FDL

[WillyT]

Stopping Tax Evasion Would Add $4 Trillion to Federal Coffers
By: David Dayen
Friday April 22, 2011 2:02 pm

<snip>

Morgan Housel writes that enforcing current tax law would bring the budget into balance practically as much as any of the competing deficit reduction plans put forward: http://www.fool.com/investing/general/2011/04/21/the-most-sensible-way-to-solve-the-budget-deficit.aspx

Tax evasion added $3 trillion to the deficit over the past decade alone, an average of $300 billion a year, according to IRS data. This isn’t revenue lost from legal tax write-offs, like the mortgage interest deduction. It’s not even, as the IRS notes, “taxes that should have been paid on income from the illegal sector of the economy.” That $300 billion represents the amount of revenue lost from people deliberately cheating on their taxes every year. This includes underreporting income, hidden offshore bank accounts, sham trusts, and other ways to illegally stiff the IRS <...>

Now extrapolate last decade’s tax fraud into the next, and adjust it for inflation and economic growth. We’re probably looking at $4 trillion in tax fraud over the next 10 years.

And there it is. Without raising tax rates or reducing spending, we could eliminate more than half of our projected deficit over the next 10 years by simply eliminating tax cheats.

You can update this with a Government Accountability Office study showing that, in fiscal year 2010, $330 billion in taxes were uncollected. So adjusting for inflation as the years go by, the $4 trillion number looks about right...

<snip>

More: http://news.firedoglake.com/2011/04/22/stopping-tax-evasion-would-add-4-trillion-to-federal-coffers/

:kick:

[CaliforniaPeggy]

1. So.........let's go after them?

Is it difficult to do?

Or are there too many in positions of power evading their taxes?

:shrug:

[msongs]

2. been to the swap meet lately? nt

[CaliforniaPeggy]

3. No. And your point is: Lots of bargaining? nt

[OnlinePoker]

4. Didn't they cut money from the enforcement budget in the latest financial "compromise"? n/t

[aka-chmeee]

5. Maybe, but...

The assholes at Tax Masters, Roni Deutch, etc. would get them settled for pennies on the dollar. My most irritating TV ad...
Paid lots of taxes over last 40 years; now I almost feel like a chump because I actually paid up.

[LoZoccolo]

6. Fire Dog Lake: automatic unrecommend n/t

[Historic NY]

7. Adding that to the non-paying Corporations we wouldn't being having a problem.

[Name removed]

8. Deleted message

Message removed by moderator. Click here to review the message board rules.

[CaliforniaPeggy]

9. Welcome to DU, vmpolesov!

Enjoy the conversation...

:hi: