Also in this playlist...
This transcript is automatically generated
Pay your taxes and studies put the IRS tax gap this is the amount that goes on collected and reported.
And nearly 600 billion dollars with a deficit of nearly seventeen trillion bucks.
That's no drop in the buck that joining us now is Scott Hodge president of the Tax Foundation.
You know this is like talking about the Mets went in the World Series who's got it could happen but didn't problem I mean god knows when it could write.
Every year it comes up why -- anything done about it.
Well because it's so hard dig into get that last dollar of income is what you have to do is essentially raise the compliance costs on everybody.
In order to get those people were in the sort of cash economy.
To fess up in in provide all of their income to the IRS.
And already Americans are paying as much as a 160 billion dollars a year just to comply to the tax with a tax code.
And this would further increase their compliance burden.
In a lot of people think that that's just far too much to get that last dollar -- vote taxes.
You know we talk about these big numbers as a nation we have some looks -- the -- highest compliance or some of the highest compliance levels.
In the entire world do we not so we complain about well nothing.
-- -- Well it's it is a bit ironic that a nation that was found out of a tax revolt is a -- relatively law abiding nation when it comes to paying taxes.
But we've seen attempts -- in the past in fact most recently with the Affordable Care Act.
Which had the increased requirement for.
Businesses to provide 1090 -- two people that they.
Pay more than 600 dollars for services that created a huge backlash in the business community.
And congress eventually backed down repeal that part of the Affordable Care Act and the president signed it as a result of all that outrage so we can see that.
Even these small attempts to try to get it that underground economy.
Are met with a lot of complaints by the business community because of that higher compliance cost.
Come on up but who -- the biggest -- of tax law who are the biggest chief wouldn't it be ease.
And he couldn't IRS focus audits.
On certain groups of individuals even more than they might already do.
Well -- this are a lot of.
-- in the cash economy it is or waiters waitresses contractors landscaper is people like that.
Who often getting paid in cash or by check and simply don't report all of that income to the IRS it's really hard to get -- that.
Because we really don't know how much is out there because it's it's simply un reported.
Do you believe though that tax simplification.
That if you made it easier to file your taxes captain -- got tax were broad tax reform and reduce even the number of greats.
That we have would that help.
In terms of overall collections by the government.
Yeah it really would dig in because of that really the cause of a lot of this is the high rates and complexity the tax code that brings a bond of upon another or abroad and a lot of this avoidance and we've seen in other countries that are moved to a -- a flat tax.
Where they've seen the the amount of revenues go up because really be incentives to avoid the tax go down.
When you moved to a simpler tax with a lower rate.
It's got a great talk came have a great weekend they well thanks for joining us today Scott high --
Filter by section