A new report says the US president will raise an additional $ 700 billion in taxes by strengthening the US tax administration. At the same time, crypto transactions and financial institutions abroad will be subjected to rigorous reporting.
– The difference between the tax gap, the tax payable and the tax paid is nearly $ 600 billion. About 15 percent of all taxes are owed. This report describes how the President’s initiative will close the gap.
How to unlock A statement was released on May 20 From the U.S. Treasury Department.
It outlines four plans that President Joe Biden will introduce as part of his commitment to infrastructure.
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Doubling the number of employees
The first proposal is to “provide tax authorities with the resources they need to deal with sophisticated tax evasion.”
The largest activity here is $ 80 billion or 670 billion kroner.
This will reverse the trend that has weakened the company over the past two decades.
The report says the increased allocation to the agency will take place over the next decade, and that the budget for 2031 will be 40 percent higher than it was in 2011, adjusted for inflation.
Among other things, the tax administration will use more than twice the amount of funding than the number of employees. Over the next ten years, the result will be another 87,000 employees.
The Ministry of Finance expects to recover up to four dollars for every dollar spent on tax officials.
– This assessment is conservative because it does not take into account how other measures prevent tax evaders and technologies, the Ministry of Finance writes in the report.
Overall, the U.S. Treasury Department’s tax analysis department estimates that strengthening tax administration will increase tax revenue by more than $ 700 billion over the next ten years.
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The second step in empowering taxpayers in the United States involves the increased use of third-party reporting.
– Wages, pensions and unemployment benefits are already subject to third party reporting. The report says the president’s proposal would improve taxation by subjecting financial flows to the same treatment.
Under this scheme, banks and other financial institutions are required to report all cash flows in and out, and to which accounts the money will go.
The reporting regime includes crypto transactions and financial institutions abroad.
In addition, companies that receive more than 10,000 cryptocurrencies must report the transaction, as well as the same amount of transactions in cash.
– The U.S. Treasury Department writes that the move could act as a deterrent by increasing the risk of detected tax evasion.
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Very efficient and reasonable
The other two activities included in the plan are to adapt the technology and more strictly regulate companies that help others generate their tax revenue.
This effort is part of the fitness American Families Program, And help pay for activities such as child benefit.
The vague rules in Congress in the United States make it so Strengthening tax authorities “does not count” By financing other bills, but it is According to Politico Support will increase in both parties to pursue tax evaders.
In addition to increasing government revenue, the initiative will improve competition in the United States and address growing inequalities.
– It is often the case that high-income earners earn more from the tax gap because they receive more of the same amount of income from undeclared sources.
– The tax gap leads to disruptions in the market, some of which are paying to avoid taxation, and there is an incentive to take easier economic measures to avoid taxation, the ministry writes in a statement.
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