- A new analysis by IRS researchers and academics published Monday morning estimates that the richest 1% of U.S. households don’t report around 21% of their income, often using complex tax avoidance strategies that allow them to outmaneuver the federal government’s increasingly rare audits of the wealthy.
- The authors write, “We estimate that 36% of federal income taxes unpaid are owed by the top 1% and that collecting all unpaid federal income tax from this group would increase federal revenues by about $175 billion annually.”
- Rep. Ro Khanna (D-Calif.) introduced legislation that would bring in $1.2 trillion in federal revenue over 10 years. “We know our tax system is broken, and it’s long past time we start fixing it,” Khanna said in a statement. “The ultra-wealthy play by different rules than the rest of us.”
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