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Even if the IRS "profits" from spending $1B to collect $2B, that's a 50% processing fee on that incoming money, halving the efficiency of that marginal dollar.
by SamReidHughes 7y ago
Even if the IRS "profits" from spending $1B to collect $2B, that's a 50% processing fee on that incoming money, halving the efficiency of that marginal dollar. If that's still worth collecting, it's better to raise taxes. Really the appropriate stopping point in IRS funding has little to do with whether one of these numbers is close to another.
- davidw 7y agoIt's also a deterrent to people trying to evade taxes. It's not fair to raise taxes on other people who are honest and pay because it's a pain to collect from some people. I realize that's simplifying things some, and not all people who don't pay do so because they're sneaky or dishonest or whatever, but I think the broader point stands.
- SamReidHughes 7y agoSo how do you know we're not at the point of diminishing returns?