The 1 Percent Are Cheating Us Out of a Quarter-Trillion Dollars in Taxes Every Year

As the social safety net is shredded, new data show that billionaires and corporations are refusing to pay hundreds of billions of dollars of owed taxes every single year. It really puts all the hand-wringing about “looting” into perspective.

The Internal Revenue Service building in Washington, DC. David Boeke / flickr


The next time you hear conservative politicians insist they want “law and order,” hate “looting,” and believe America can’t afford new government programs, show them two landmark reports that emerged in the last twenty-four hours. The data in those analyses tell the story of conservative politicians letting billionaires and corporations brazenly evade laws and effectively loot hundreds of billions of dollars from the public treasury — all while those same politicians plead poverty to justify cutting the social safety net during a lethal pandemic.

The first report came from the nonpartisan Congressional Budget Office (CBO), which found that between 2011 and 2013, $381 billion in taxes went unpaid every single year. Couple that data with recent Harvard University research showing that the top 1 percent of income earners are responsible for 70 percent of the tax gap, and you see the full picture: The wealthiest sliver of the population is depriving the American public of about $266 billion of owed tax revenue every year.

That tax gap didn’t just magically happen — it is the result of conservatives’ huge cuts to the Internal Revenue Service’s enforcement budget, which resulted in a particularly precipitous decline in audit rates for the superrich. In fact, the $266 billion figure could be an understatement, because the congressional budget analysts were estimating the tax gap that existed before those IRS budget cuts.

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