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Are they failing to report (which amounts to tax evasion, a crime), or deferring payment? Also, it's interesting that the five-percenters (95-99th percentiles)

by nickff 5y ago

Are they failing to report (which amounts to tax evasion, a crime), or deferring payment? Also, it's interesting that the five-percenters (95-99th percentiles) are the ones responsible for the most 'failure'. This is from the table in the report, not the article. https://home.treasury.gov/news/featured-stories/the-case-for-a-robust-attack-on-the-tax-gap https://home.treasury.gov/news/featured-stories/the-case-for... Update: from the citations in the IRS post, it looks like they're talking about estimated tax evasion.

q1w2 5y ago
This is the original source of the article... https://ntanet.org/wp-content/uploads/2020/05/Jason-DeBacker-InequalityCompliance_Slides_NTA.pdf https://ntanet.org/wp-content/uploads/2020/05/Jason-DeBacker... It's a lot less robust than I would have liked. It really seems more to me that since the top 1% are not salary, their taxes are using more complex calculations on Schedules C, D, and E, that differences in opinion on taxes owed exist more frequently - which should be expected. The original source also notes: "Higher income individuals have larger amounts that are misreported, but they are small compared to their overall income. This results in small but statistically significant reductions in the Gini coefficient" ...of course, the headline has already been let loose on social media, so the truth behind whether it's even true that 1% are tax dodging or not is more or less irrelevant.