How do you figure “1/50th” of the taxes owed ?
I think the IRS statement is only in regards to personal income taxes. So a $346B tax gap compared to the roughly $1T personal income taxes actually paid, is big factor. More like 1/4th of the personal income taxes the IRS expects.
So 1/6th of the poeple evading results in 1/4th of the tax revenues as a shortfall. So it is above-average incomes, not lower incomes, that are evading.
Abolish the Income Tax and its complexities and just have a consumption (sales) tax. The more you use/buy, the more you pay. No tax shelters, deductions, or mountains of paperwork that you have to save forever. No government records on where you put your money. You pay as you go.
Ah, yes, see your point. Misread. The “GDP” numbers I thought were the percentage they owed.