Tax Reform 5: The nuts and bolts of its design

Last week I claimed the value of taxes not paid in 2010 but which ought to have been paid under the tax code was roughly equivalent to that actually paid ($102 billion). Taxes paid therefore were only about one-half what was theoretically due. This week I consider some important nuts and bolts considerations essential to designing successful tax reform. These support my contention that only a National Commission on Tax Reform can fully address it in all its varied social, political, and cultural dimensions.

Tax expenditures
First, the estimate of the Guyana tax-gap, which I provided last week is conservative. It includes three components: 1)the indicators US authorities use (under-reporting, under-payment, and non-filing); 2) tax-evasion in the underground economy; and 3)  …..To continue reading, login or subscribe now.

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