How to pay for Biden's infrastructure plan 101: Collect taxes due.
This is not new taxation, this is merely collecting what is due.
By Timothy F. Geithner, Jacob J. Lew, Henry M. Paulson Jr., Robert E. Rubin and Lawrence H. Summers.
Six hundred billion dollars per year, and growing: That is two-thirds of total nondefense discretionary spending by the federal government, about what is spent on defense operations, military personnel and procurement, and more than mandatory federal expenditures on Medicaid. It’s also approximately how much unpaid taxes cost the U.S. government. This must change, and it can.
While we are not in agreement on many areas of tax policy, we believe in the importance of strengthening the tax system to do more to collect legally owed but uncollected taxes — which, left unaddressed, could total $7 trillion over the next decade.
Just a reminder: Tax evasion is against the law.
There is no magic involved.
There is no change in taxation rate required.
There is no need for a supermajority in the senate.
No need for bipartisanship.
The law just needs to be applied.
Once done, you can go after the avoidance cherry.
Some have calculated that tax evasion costs the US $1 trillion a year.
You want nice things like safe and functional bridges?
Apply the laws of the land.
But on this issue, all should agree, including members of Congress of both parties: Giving the I.R.S. the tools it needs to improve compliance will raise significant revenue and create a fairer, more efficient system of tax administration.