1.5: Tax Gap

Encourage better compliance with the tax laws.

Other Information:

The IRS estimates that the "tax gap"—the difference between taxes owed and what the government actually collects—was about 16 to 20 percent of revenues in recent years according to the Tax Policy Center. The government could do more to encourage voluntary compliance by making the tax system simpler and fairer (so people feel that everyone is paying their fair share), and increasing enforcement. The government should also consider providing the IRS with more resources for enforcement and monitoring.

Stakeholder(s):

• Taxpayers

Indicator(s):

Indicator:1

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