The Return of the Tax Gap Hype

Source: The American Spectator
by Veronique de Rugy

“Every policy wonk will tell you that after you live in Washington long enough, you start seeing the same issues reemerge on a regular basis. Common ones are praise for the magical ability of government spending to help pay for itself during recessions and handwringing over the myth of middle-class stagnation. And when Uncle Sam’s coffers are empty, everyone suddenly remembers the so-called tax gap — the difference between the tax revenues Congress expects versus those it actually collects. So right on cue, calls to reduce the tax gap are back. … While politicians have no problem charging Uncle Sam’s credit card and leaving the bill for future generations, today’s leaders like collecting rich taxpayers’ money even more. But increasing taxes is hard, so Democrats are turning their attention to the difference between taxes owed and taxes collected.” (07/15/21)