TaxAdministrationUS Treasury secretary against collecting more tax

US Treasury secretary against collecting more tax

Henry Paulson says trying to reduce the level of uncollected tax significantly not a good idea

US Treasury secretary
Henry Paulson has told
the Senate that trying to reduce the level
of uncollected tax significantly would do more harm than good.

His comments came just a week after leading Democrats and the
General Accounting Office looked to the fabled
‘tax gap’ to collect more money without seeming to increase tax rates,

But Paulson told a Senate hearing: ‘There is a big part of the tax gap that
we simply won’t be able to reach without adding draconian and painful
requirements on all taxpayers. The cost of compliance for individuals and
businesses, most of whom already pay what they owe, would far outweigh the
gains.’’

Last week, the Government Accountability Office said that improved IRS
reporting would help the IRS bring in more of the $345bn in taxes that
supposedly go unpaid each year.

Further reading:

Has the regulatory penny dropped?

US government official calls for principles-based
accounting

US Treasury to call for regulatory rethink

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