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>> The people who are skirting around taxes are usually the ultra wealthy elite, right? No, not right. There are relatively few ultra wealthy elite. 25 million
by rufus_foreman 4y ago
>> The people who are skirting around taxes are usually the ultra wealthy elite, right?
No, not right. There are relatively few ultra wealthy elite. 25 million people or families claim the Earned Income Tax Credit, and the IRS estimates that about a quarter of the payments for EITC claims were issued improperly in 2020.
The IRS doesn't have the ability to verify the claims in an automated way since they don't have the data on child eligibility and not all income is reported by employers. So if they are going to get compliance, they would need to audit on a massive scale.
- atdrummond 4y agoI’d argue just as Patio11 argues that zero payment fraud is a suboptimal amount of payment fraud, so too is zero tax fraud. And in the case of taxes, the losses (movement to low tax jurisdictions, winding down of enterprises, expending less hours on labour at the margin, etc) begin to heavily outweigh the gains (in marginal income) well before the “zero tax fraud” point.