CLICK HERE for a printable version of this one-pager.

The Biden Administration’s estimates on closing the tax gap don’t add up

• The IRS’s numbers are highly disputed. IRS Commissioner Rettig testified before Congress that the tax gap could be as high as $1 trillion—contradicting the official IRS estimate of $381 billion per year. President Biden’s Tax Compliance Agenda uses an estimate of $630 billion.
• Worse, these estimates are outdated. All of these estimates are based on years-old data, including before a tax reform that simplified the tax code and improved compliance.
• We need a better approach. We need accurate data to close the tax gap.

Americans will reject Biden’s push for a more invasive, supercharged IRS

• Your local bank will become an arm of the IRS, collecting private bank account information. The Administration claims this will bring in $460 billion, but there is little evidence to support that number.
• A hiring spree bigger than our entire Coast Guard. The Biden Administration wants to build an army of 87,000 new IRS employees by spending $80 billion to hire more than double the number of people serving in the U.S. Coast Guard today.
• Not a strong record of delivering results. The IRS would have to overcome its poor record of effectively and inefficiently using resources. It is unlikely to collect its stated target of an additional $700 billion in revenue.
• Studies disagree with Biden’s approach. Research shows that those determined to evade taxes will adjust their behavior based on new IRS efforts within three short years—so the other $260 billion in this “pay-for” is also far too optimistic.

CLICK HERE for a printable version of this one-pager.