As the country’s economic inequalities increase, so does the differential treatment of taxpayers. According to IRS statistics, those with income of less than $ 25, 01 per year are more researched than those who earn $ 500, 000 up
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More than 20% of income of richest Americans is not reported to the Internal Revenue Service (IRS), according to a new study that calculates that tax evasion in the country .
The study was conducted by two IRS researchers, John Guyton and Patrick Langetieg, and three professors: Daniel Reck from the London School of Economics, Max Risch of Carnegie Mellon University and Gabriel Zucman of the University of California at Berkeley .
The external study that tax evasion is much higher than previously estimated, as many tycoons have found effective ways for their vast fortunes are not traced .
Random audits of the wealthy can detect some tax evasion, e.g. But the study authors found that the IRS easily loses hidden income in sophisticated ways, even in private companies and offshore structures .
Collecting all unpaid income tax could increase significantly United States Treasury income in $ 175 billion dollars a year .
While many forms of income, including wages, are automatically reported to the IRS and easily discovered in a basic audit, Profits of private companies and investment associations are more difficult to track .
Hidden income at the top means that income and wealth inequality may be more skewed than researchers had previously estimated, the researchers concluded. authors.
Researchers suggest that the IRS should implement “additional tools” to “effectively combat high income tax evasion,” including the use of whistleblowers and more audits.
However, given the tricks carried out by the rich to evade taxes, The IRS tends to focus on taxpayers who have no way to hide their earnings, as well as the means to hire lawyers to defend them compared to the great tycoons.
As economic inequalities in the country increase, so too increases the differential treatment of taxpayers . According to IRS statistics, those with income of less than $ 25, 01 per year are more researched than those who earn $ 500, 000 up.
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