An editorial in the NY Times this morning nicely expresses my view that the most important thing about the revelations this week regarding Trump’s tax returns is not what the President has done, but the fact that it’s so easy for rich people to get away with gaming the system.
I’m one of those who believes wealthy Americans should pay more in taxes, but even assuming that tax rates are where they should be, Congress has gutted the IRS’s ability to collect even those. So many Americans view the tax man as the enemy that there has been little resistance to IRS budget cuts resulting in 61 percent fewer millionaires being audited in 2018 vs. 2010.
The Times editorial cites a study asserting that $1 trillion dollars of tax receipts go uncollected because of IRS budget cuts and antiquated collection techniques. It’s a travesty.