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

"The tax gap between what Americans already legally owe, and what is actually paid is enormous and getting worse...We don’t need more taxes, we need to just collect what is already on the books. Charles Rossotti, a former IRS Commissioner and tax expert, has proposed a way to correct this problem that merits everyone’s serious consideration."
John Breaux Sr.Senator from Louisiana (1987-2005), Representative from Louisiana (1972-87), Co-Chair of President Bush's Panel on Tax Reform
"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
"Charles Rossotti’s proposal to raise tax revenue by enforcing existing law rather than raising tax rates under new law is absolutely the way to go. It has never made any sense to me why we should raise taxes of people who are paying their fair share rather than collecting tax from those who have not paid their fair share."
Lawrence B. GibbsIRS Commissioner (1986-89) under President Ronald Reagan
"Charles did wonderful things to lift the IRS during his leadership. This proposal is logical and deserves serious consideration. Our IRS systems need to be fit for purpose for the current task."
Chad HollidayChair Royal Dutch Shell, Former Chief Executive Officer Dupont Corp.
"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
"The tax gap is a longstanding problem that deserves continuing attention. Taking measures to address the tax gap will not only raise needed revenue, but will also enhance taxpayer confidence in the fairness of our tax system that depends upon self-assessment."
Eric SolomonTreasury Assistant Secretary for Tax Policy (2006-09)
"By modernizing the IRS’s 50-year old IT systems and replacing some of the employees the agency has lost due to decades of budget cuts, we could shrink America’s “tax gap” ... Modernizing the IRS’s IT systems would also help the IRS provide better customer service."
Jim DoylePresident, Business Forward Foundation; President, Portico Policy Advisors
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Recent News and Events



See all News and Events

The Tax Gap and the Biden Plan to Beef Up the IRS
WSJ Letter to the Editor by former IRS Commissioner Charles Rossotti - 9/10/21
Letter and Original Editorial
The Case for a Robust Attack on the Tax Gap
Natasha Sarin, Deputy Assistant Secretary for Economic Policy - 9/9/21
Read Article
Banks Are Wrong to Fight Proposed New IRS Disclosure Rule
By Charley Ellis & Alex Boyle - Bloomberg Opinion - 9/28/21
Read Op-Ed
IRS Data Security Paper
Shrink the Tax Gap Analysis of IRS Taxpayer Information Security
Read Paper
The banking industry is throwing stones at a key Biden nominee. But it lives in a glass house.
Washington Post Opinion by former Treasury Secretary Lawrence H. Summers - 10/8/21
Read Article
Give IRS the tools it needs to enforce tax rules and catch cheaters
Brookings Op-Ed by William G. Gale, Co-Director Urban-Brookings Tax Policy Center - 9/1/21
Read Editorial
How to get the wealthy to pay the taxes they owe
CNN Business Perspectives Opinion by Jacob J. Lew, former Treasury Secretary - September 30, 2021
Read 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 Presentation

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