Post by shoreman on Aug 11, 2006 17:55:17 GMT -5
Sen. Baucus Discusses Tax Simplification, Calls for Action on Tax Gap
For immediate release
Media contact: William Ahern (202) 464-5101
www.taxfoundation.org/news/show/1750.html
WASHINGTON, D.C.—Treasury should submit a business plan to reduce the tax gap, according to Senator Max Baucus, Ranking Member of the Senate Finance Committee. The tax gap is the amount of income taxes due that Americans evade each year. (Full interview available at www.taxfoundation.org/podcast/show/1749.html)
Baucus made his comments on a wide range of tax issues in a conversation with Tax Foundation President Scott Hodge, in the foundation’s new podcast series.
“We unfortunately are faced with about $350 billion each year of income taxes that are legally owed but not paid,” said Baucus. “Some is due to taxpayers’ errors, some is fudging such as overstating expenses, and some is blatant criminality. This huge tax gap -- $2 trillion over the last 7 years -- is an affront to all the rest of us who pay our taxes.”
“I have told Treasury Secretary Paulson that I want the administration, the IRS and the Treasury, to give Congress a plan by the end of September of how we’re going to solve the tax gap. I want a business plan with timelines, with benchmarks, with dates, revenues that will be collected and certain specific actions that the IRS and Treasury would have to take.”
“I’m not out to get anybody,” Baucus said, acknowledging that Congress is partly to blame. “I know we have to simplify the code, address tax reform, and make sure that the system is fair, but in the meantime let’s get these income taxes collected.”
Baucus also addressed what he considers the inadequate national effort to get Americans to file their tax returns electronically.
“With the IRS’s Free File program, the taxpayer is directed to a preparer or somebody else who actually prepares the returns. And sometimes there are hidden fees and income limits. The number of people using it has dropped, and I think the solution is to get ride of the middle man and no fees required.”
Asked about the IRS’s recent decision to stop collecting long-distance telephone taxes, Baucus decried the local tax as well, asserting that it’s regressive and should be repealed.
“I’ve introduced legislation that’s passed the Senate Finance Committee repealing totally the federal telephone excise tax. I hope to get it passed this year.”
Baucus was more pessimistic about the chances for fundamental tax reform.
“To be honest, not much is going to happen this year. The Treasury hasn’t done much with the report submitted by the President’s Tax Reform Panel. We should continue working on it, though, and see how we can get the ball rolling early next year.”
The interview is Number 4 in the Tax Foundation’s podcast series. It’s available online at www.taxfoundation.org/podcast/show/1749.html.
The Foundation will publish a podcast each Tuesday, featuring an interview that sheds light on the nation’s tax system. Senior editor of Tax Notes, Martin Sullivan, will be the guest in the next podcast, Tuesday, August 15.
Best known for its annual calculation of Tax Freedom Day®, the Tax Foundation is a nonpartisan, nonprofit organization that has monitored fiscal policy at the federal, state and local levels since 1937.
For immediate release
Media contact: William Ahern (202) 464-5101
www.taxfoundation.org/news/show/1750.html
WASHINGTON, D.C.—Treasury should submit a business plan to reduce the tax gap, according to Senator Max Baucus, Ranking Member of the Senate Finance Committee. The tax gap is the amount of income taxes due that Americans evade each year. (Full interview available at www.taxfoundation.org/podcast/show/1749.html)
Baucus made his comments on a wide range of tax issues in a conversation with Tax Foundation President Scott Hodge, in the foundation’s new podcast series.
“We unfortunately are faced with about $350 billion each year of income taxes that are legally owed but not paid,” said Baucus. “Some is due to taxpayers’ errors, some is fudging such as overstating expenses, and some is blatant criminality. This huge tax gap -- $2 trillion over the last 7 years -- is an affront to all the rest of us who pay our taxes.”
“I have told Treasury Secretary Paulson that I want the administration, the IRS and the Treasury, to give Congress a plan by the end of September of how we’re going to solve the tax gap. I want a business plan with timelines, with benchmarks, with dates, revenues that will be collected and certain specific actions that the IRS and Treasury would have to take.”
“I’m not out to get anybody,” Baucus said, acknowledging that Congress is partly to blame. “I know we have to simplify the code, address tax reform, and make sure that the system is fair, but in the meantime let’s get these income taxes collected.”
Baucus also addressed what he considers the inadequate national effort to get Americans to file their tax returns electronically.
“With the IRS’s Free File program, the taxpayer is directed to a preparer or somebody else who actually prepares the returns. And sometimes there are hidden fees and income limits. The number of people using it has dropped, and I think the solution is to get ride of the middle man and no fees required.”
Asked about the IRS’s recent decision to stop collecting long-distance telephone taxes, Baucus decried the local tax as well, asserting that it’s regressive and should be repealed.
“I’ve introduced legislation that’s passed the Senate Finance Committee repealing totally the federal telephone excise tax. I hope to get it passed this year.”
Baucus was more pessimistic about the chances for fundamental tax reform.
“To be honest, not much is going to happen this year. The Treasury hasn’t done much with the report submitted by the President’s Tax Reform Panel. We should continue working on it, though, and see how we can get the ball rolling early next year.”
The interview is Number 4 in the Tax Foundation’s podcast series. It’s available online at www.taxfoundation.org/podcast/show/1749.html.
The Foundation will publish a podcast each Tuesday, featuring an interview that sheds light on the nation’s tax system. Senior editor of Tax Notes, Martin Sullivan, will be the guest in the next podcast, Tuesday, August 15.
Best known for its annual calculation of Tax Freedom Day®, the Tax Foundation is a nonpartisan, nonprofit organization that has monitored fiscal policy at the federal, state and local levels since 1937.