Comment by bobthepanda
2 years ago
There is also the fact that there is a party in government literally dedicated to shrinking government to the point where it cannot effectively inspect or regulate. The IRS for example is not well funded enough to actually catch rampant tax evasion.
20 years ago I was working at Accenture and they were giving tax software to states for “free” including cracking down on delinquent or underpaying entities. By “free” I mean they received a percentage of any additional tax revenue they brought in through their enforcement. The state got additional revenue it would have otherwise not received without any additional cost, possibly cheaper than had they hired full time staff to do the same job since Accenture built for one state and ported to the rest.
It’s not about deliquent payments but auditing fraudulent returns. Particularly for rich people using all sorts of novel ways to hide taxable money, it does require some investigation to dive deep.
That’s the enforcement part.