The rich Americans are the richest one percent who don’t pay $163 billion into the state budget, according to a report from the U.S. Treasury Department. The poor, however, are also guilty of underpaying the state treasury 36 billion a year – not fully pay taxes 50 percent of Americans.
Biden administration officials and leading Democrats have repeatedly said they have big plans to overhaul the tax law and raise taxes on rich Americans and big corporations. That scenario, in particular, is envisioned in the three-and-a-half trillion-dollar budget bill, which is now the subject of intense discussions between lawmakers and the White House.
A net income of three-quarters of a million a year or more is how 1 percent of Americans live, and about a third of them are tax evaders in one way or another. Natasha Sarin, deputy assistant director of the Treasury Department, wrote this in an article posted on the official page of the U.S. Treasury Department.
“A well-functioning tax system requires everyone to pay taxes. Today, the so-called ‘tax hole’ – the difference between the taxes that should be paid and what has gone into the treasury – is about 600 billion a year. This means a loss of about 7 trillion tax revenues over 10 years. The magnitude of the net loss is staggering: it is equal to 3% of GDP,” said Sarin.
Despite the fact that the tax administration knows who owes it and how much, the agency, according to the official, is not able to collect at least 15 percent of those funds. To be more effective, Sarin said, her agency needs new tools of influence and money – $80 billion over 10 years. Sarin is sure that this, she says, will make tax collection “progressive”.
