Federal tax gap

Income tax385 billion ($385,000,000,000)

I’m not sure what worries me more: the fact that the IRS was unable to collect approximately $385 billion (15% of the total) of federal taxes in 2006 or that – according to an article by CNN Money – that this is the best data policymakers have to go on regarding the government’s revenue shortfall. The worst part is that this is emafter /emthe more than 60,000 corporate and 1.5 million individual tax return audits the IRS conducts on an annual basis.  

Tax gap 2006Taxation is one of the most polarizing topics in this country and is one of the core issues debated in an election year such as this one. Like a lot of people I tend to feel like I pay too much to the government every April but when we’re living in a time where the U.S. federal government is running in the red year over year, one might think that collecting the money they’re due would be a good idea – regardless of your political affiliation.

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