Testimony: International Tax Avoidance
Lawmakers should aim for policies that support investment and hiring in the United States and refining anti-avoidance measures to improve administrability and lower compliance costs.
9 min read
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IRS Report Shows Closing the Tax Gap Would Not Close the Deficit
The latest tax gap report from the IRS has generated much media attention—and much misunderstanding.
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Why Congress Is More to Blame than IRS for $26 Billion in Refundable Tax Credit Overpayments
Lawmakers should avoid delivering social and economic benefits through the tax code whenever possible and work to simplify or repeal the tax expenditures already in the tax code.
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The Inflation Reduction Act, What to Know
The Inflation Reduction Act would raise taxes on corporations and top earners with the goal of funding a number of programs to reduce carbon emissions, address prescription drug costs, and spur the economy. Garrett Watson joins Jesse Solis to talk through what these tax changes would mean for the economy: Will they reduce inflation, and do they break the President’s pledge not to raise taxes on those earning less than $400,000?
Proposal for Reporting Requirements for Financial Institutions Misses the Mark
Reducing the tax gap is a good idea, but the reporting requirements for financial institutions could be better-targeted at the problem at hand.
4 min read
5 Things to Consider in the Tax Gap Discussion
Increasing tax compliance is a major part of the Biden administration proposal to raise revenue for physical and social infrastructure. Reducing the tax gap—the difference between taxes owed and taxes paid—is a good way to raise revenue, but it doesn’t come without trade-offs, and it’s important to go about it in the right way.
3 min read
Considering Trade-offs to Improving Tax Collections
Recent Biden administration proposals rely heavily on revenue from better IRS tax collections to fund spending initiatives. The American Families Plan uses several avenues to reduce the tax gap (or the difference between taxes paid and taxes owed), from increasing the IRS’s tax enforcement budget to improving information technology and expanding reporting requirements.
4 min read
Tackling the Tax Gap: What Can Be Achieved?
Learn about the tax gap, what it is, how the U.S. compares to other countries, and recent proposals aimed at closing it. We also explore how much revenue could actually be raised through increased tax enforcement, the current challenges the IRS faces, and how stronger enforcement could impact taxpayers at large.
Striking Right Balance for Cryptocurrency Reporting Requirements in Bipartisan Infrastructure Package
While it makes sense to ensure cryptocurrency transactions are treated similarly to other financial assets, the nature of these requirements as written are potentially unworkable.
3 min read
Return-Free Filing: A Better Fit for a Better Tax Code
Return-free filing could reduce compliance costs for many taxpayers, but would only be as good as the system it is administrating.
4 min read
Simplifying the Tax Code and Reducing the Tax Gap: What Can Be Achieved?
Reducing the tax gap is, on the margin, a good way to raise revenue, but is not without costs. Policymakers should consider compliance costs for law-abiding taxpayers as well as administrative costs for the IRS when evaluating measures to reduce the tax gap.
33 min read
How Biden’s Corporate Tax Increases Could Make Tax Enforcement Harder
If Biden wants to reduce tax evasion, raising the corporate rate, increasing the incentives to engage in tax evasion, and creating a larger tax advantage to becoming a pass-through business is counterproductive.
3 min read
