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Tax Gap at Record High 14.4%

Bea_1The Bureau of Economic Analysis has released a new estimate of the tax gap — the gap between personal income and AGI — in Comparison of BEA Estimates of Personal Income and IRS Estimates of Adjusted Gross Income.  The new report pegs the tax gap at 14.4%, the highest figure in the 46 years the data has been computed, and up from 10.7% in 2000.  For historic tax gap amounts, see here. (Thanks to Bruce Bartlett for the tip.)


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