ShrinkTheTaxGap_Hero_2021_v2

Our Purpose

Make the Federal tax system fair for everyone who pays their taxes

      • Most people pay their taxes
      • Some people don’t
      • That’s not fair

The Problem

$574 Billion PER YEAR in unpaid taxes

      • A minority of taxpayers fail to pay what they legally owe. This unpaid amount – the Tax Gap – is more than all the income tax paid by 90% of individual taxpayers.
      • Most of the Tax Gap is from high income taxpayers not paying what they owe.
      • This is unfair to every compliant taxpayer.
      • Before we raise taxes on those already paying what they owe, we should collect from those who are not paying.

The Solution

A practical plan to shrink the Tax Gap

  •    Our plan raises $1.4 trillion over 10 years without raising taxes on any compliant taxpayer.
    This is almost as much as President-Elect Biden’s tax plan would raise from increasing individual income and social security taxes.

    Our plan includes three practical steps:
            • Use Modern technology to improve service and identify unreported income
            • Ensure all income is reported to the IRS
            • Provide IRS resources to collect what we know is owed.

It’s only fair – before raising taxes, we should collect the taxes already on the books.

Look Who Agrees

Leaders from across the political spectrum and business community support this plan.

See all the comments on our proposal

"Shrink The Tax Gap” represents the most practical, balanced, and potentially effective proposal for improving tax compliance developed in recent years."
Stuart BrownIRS Chief Counsel (1994-2001), Deputy Chief of Staff of the Congressional Joint Committee on Taxation (1989-91)
"The proposals are nuanced and thoughtful, cognizant of recent of trends affecting the IRS and informed by his professional experience in tax administration."
Bill GaleCo-Director, Urban-Brookings Tax Policy Center; Miller Chair, Brookings Institution
"Shrink the Tax Gap is a straightforward, actionable proposal that improves the fairness of our tax system and addresses the Federal Government’s need for additional revenues. In today’s digital economy, it is an idea whose time has come and deserves broad bipartisan political support."
Andrés GluskiPresident and CEO, The AES Corporation
"This analysis of the tax gap and action plan for narrowing it are critical for enhancing the effectiveness of the IRS and the fairness of the enforcement of our tax laws."
William W. LewisFormer Senior Partner, McKinsey & Co., Former Acting US Secretary of Energy
This idea is more than fair, politically simple, pays for itself over and over and over again, and stops evasions that are unfair. So it’s good for America. Let’s get it done!
Charley EllisPast Chair of Whitehead Institute, CFE Institute, and Yale Investments
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Recent News and Events



See all News and Events

A Tool to Reduce Growing Budget Deficits? The Collection of Unpaid Taxes
Committee for Economic Development, The Conference Board - CED Trustee Briefing - 3/31/21
Read Article
A new attack on Biden's stimulus gives Democrats a way to call the GOP's bluff
Washington Post Opinion by Greg Sargent - 3/11/21
Read More
IRS chief says some $1T in taxes going uncollected annually
Politico: Tax by Aaron Lorenzo - 4/13/21
Read Article
How Biden Funds His Next Bill: Shrink the $7.5 Trillion Tax Gap
New York Times Op Ed - Chye-Ching Huang - 3/10/20
Read Commentary
How to Collect $1.4 Trillion in Unpaid Taxes
New York Times Editorial Board Opinion - 3/20/2021
Full Article
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Here is our proposal to shrink the Tax Gap and make it easier for tax payers to deal with the IRS.

Reform Proposal

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