In 2010, there was a ‘tax gap’—i.e., the difference between federal taxes owed and those actually paid—of $410–$500 billion. Some of the gap stems from the complexity of the tax code. Much of it, though, is deliberate: self-employed individuals working for cash, table-servers under-reporting tips, taxpayers claiming unauthorized credits and deductions. And don’t forget the highly paid White House, congressional, and federal agency staff (including some at the Internal Revenue Service) who, according to reports last year, collectively underpaid their taxes by tens of millions of dollars.
One cannot condone breaking the law, but if millions of otherwise law-abiding Americans are defying a law, then maybe something is wrong with the law itself. Millions of Americans despise our tax laws. They believe that taxes are excessive and that the tax regime is arbitrary, discriminatory, and oppressive…. The fundamental problem is the widespread perception that our political system itself is immoral, dishonest, and corrupt.
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