Ben ZippererJun 14, 2023

IRS audits of high earners are incredibly effective at raising tax revenue and reducing deficits.

New research shows that for each $1 spent on an audit of a high income individuals, the audit recovers $2 in tax revenue immediately, and then another $10 over the next 14 years as audited individuals voluntarily pay more in taxes due to deterrence effects

https://policyimpacts.org/research/67/a-welfare-analysis-of-tax-audits-across-the-income-distribution

A Welfare Analysis of Tax Audits Across the Income Distribution

Will Boning, Nathaniel Hendren, Ben Sprung-Keyser, and Ellen Stuart

Show threadBen Zipperer

the image above is from the Washington Post writeup of the research

https://www.washingtonpost.com/opinions/interactive/2023/irs-enforcement-costs-congress-funding/

Congress just cut IRS funding. It costs even more than we thought.

New research finds that for each extra dollar the IRS spends auditing wealthy taxpayers, it can collect more than $12 in return.

The Washington Post
Jun 14, 2023 at 2:23pmWeb
Show threadPhilip N CohenJun 14, 2023
@benzipperer great example of nonlinear policy effects