Lincoln Calls on Bush Administration to Join Fights to Close "Tax Gap"

Lincoln Calls on Bush Administration to Join Fight to Close ‘Tax Gap'

U.S. Senator Blanche Lincoln (D-Ark.) today called on the Bush Administration to make closing our country's "tax gap" a national priority.

At a Senate Finance Committee hearing held earlier today, Lincoln urged the Administration to join Congress in working to close the disparity between taxes owed to the government and taxes the government actually collects, a difference known as the "tax gap."

"We owe it to honest taxpayers in this country, who unjustly bear the financial burden of those who do not pay their fair share, to come up with a solution to this strenuous issue," Lincoln said. "I encourage the Administration, the Internal Revenue Service and Congress to work together to consider legislative and administrative initiatives to close this incredible disparity. Closing the tax gap would significantly reduce our federal deficit and strengthen our economy."

Every year, approximately $345 billion in legally owed taxes go uncollected by the U.S. Treasury. Experts agree that a multi-faceted approach including increased Internal Revenue Service (IRS) education and enforcement mechanisms as well as legislative action to simplify the tax code will be needed to make headway on the problem.

In June Lincoln cosponsored a Finance Committee amendment, which was accepted under the Good Government Bill, that would increase funding for IRS enforcement and would require the IRS to submit an annual tax gap report to Congress.

http://lincoln.senate.gov/press_show.cfm?id=259730