Shrinking the Tax Gap: Approaches and Revenue Potential / Natasha Sarin, Lawrence H. Summers.

Format:

Book

Author/Creator:

Sarin, Natasha.

Contributor:

National Bureau of Economic Research.

Summers, Lawrence H.

Series:

Working Paper Series (National Bureau of Economic Research) no. w26475.

NBER working paper series no. w26475

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Shrinking the Tax Gap

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2019.

Summary:

Between 2020 and 2029, the IRS will fail to collect nearly $7.5 trillion of taxes it is due. It is not possible to calculate with precision how much of this "tax gap" could be collected. This paper offers a naïve approach. The analysis suggests that with feasible changes in policy, the IRS could aspire to shrink the tax gap by around 15 percent in the next decade--generating over $1 trillion in additional revenue by performing more audits (especially of high-income earners), increasing information reporting requirements, and investing in information technology. These investments will increase efficiency and are likely to be very progressive.

Notes:

Print version record

November 2019.