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View Diary: Want to Reduce the Deficit? Start by Funding the IRS (81 comments)

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  •  Even the most efficient can be improved. (3+ / 0-)
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    MKinTN, caul, Creosote

    With all respect, I have to disagree with parts of this post.  First, with the implicit premise that a high level of efficiency is good enough.  This ignores the well articulated argument made above concerning fairness.  The lack of an effectively fair tax rate on those, like a recently defeated presidential candidate, who benefit most from the Government creating an environment that enables massive investment income, is one side of that fairness problem.  To be truly effective, the IRS needs the personnel to close the loopholes created by tax attorneys through the rule making process, and litigation.

    Second is the inherent unfairness that undermines confidence in Government where the lack of resources leaves pockets of nonenforcement.  We all know about huge corporations that freeload off society and pay no taxes.  There are also less monolithic pockets of tax invasion that are equally insidious.  A couple of years ago we tried to find a nanny for our child on the suburban Philly mainline.  We looked at about a dozen candidates and all were willing to work only under the table.  We even looked at a nanny share with another couple which feel through over the sticking point of paying the relevant payroll taxes and doing proper withholding.  Further inquiries suggest that virtually nobody in the western Philly suburbs who has a nanny or works as a nanny is complying with the tax obligations.  Amazingly, people are not particularly shy about revealing their participation in this culture of evasion.  

    This is an example of an environment, much like the multinational corporate environment,  where evasion becomes the accepted norm.  No matter how efficient enforcement is, improving effectiveness pays off when it shifts the norms toward compliance and increases the perception of fairness.  

    If we do not maintain Justice, Justice will not maintain us. -Sir Francis Bacon.

    by Res Ipsa Loquitor on Thu Jan 31, 2013 at 06:46:19 AM PST

    [ Parent ]

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