Thanks to crypto, tax evasion by the wealthiest and more.
As lawmakers and administration officials in Washington argue over the merits of hiking taxes on the biggest corporations and the wealthy, IRS Commissioner Charles Rettig said the tax gap—the difference between federal taxes legally owed and those actually collected—is approaching and could exceed $1 trillion per year, more than double the agency’s most recent official estimate. $175 billion per year. That’s how much the top 1% of taxpayers contribute to the tax gap each year, according to a recent study, thanks to pass-through and offshore income. The study estimated that the top 1% of taxpayers don’t pay taxes on 20% of their income.
