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Tax Code Creates Tax Evasion

Written By: Mark Hendrickson  |  Posted: Friday, July 22nd, 2011

            In 2010, there was a "tax gap"-i.e., the difference between federal taxes owed and those actually paid-of $410-$500 billion.

            Some of the gap stems from the complexity of the tax code. Much of it, though, is deliberate­­: self-employed individuals working for cash, table-servers under-reporting tips, taxpayers claiming unauthorized credits and deductions. And don't forget the highly paid White House, congressional, and federal agency staff (including some at the Internal Revenue Service) who, according to reports last year, collectively underpaid their taxes by tens of millions of dollars.

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