New York Times:

• Editorial, Tax Cuts and Consequences:

The tax system in the United States is supposed to mitigate inequality. But a recent report by Congress’s budget agency [blogged here] provides fresh evidence that Bush-era tax cuts have done more to reinforce inequality than to redress it.

• Lynnley Browning, Accountant Pleads Guilty in KPMG Shelter Case:

A California accountant pleaded guilty yesterday to charges of conspiracy, tax fraud and obstructing a federal investigation, and pledged to help prosecutors as they conduct a widening criminal investigation of questionable tax shelters. The accountant, Steven Michael Acosta, entered his plea in Federal District Court in Manhattan, becoming the fourth person to do so in the inquiry.

Reuters:  Celebrity Swag Bags Get Lighter After Tax Crunch:

The gift bags for celebrities who take part in Hollywood award shows are likely to be noticeably lighter after a crackdown by U.S. tax authorities on extravagant gifts including jewelry and luxury trips at awards like the Oscars and Golden Globes.

Wall Street Journal:

• Paul Davies & David Reilly, KPMG Tax-Shelter Probe Nets a Fourth Guilty Plea:

A California accountant pleaded guilty yesterday to four criminal charges related to the sale of allegedly improper tax shelters and his role in helping a former KPMG executive try to obstruct a government investigation into the products. The admission marks the fourth guilty plea the government has secured in its investigation into shelters designed by KPMG. As part of a deal with prosecutors, Steven Acosta, of Pasadena, Calif., admitted to conspiracy, tax evasion and two counts of obstruction of an IRS investigation. The 49-year-old faces as many as 16 years in prison but has agreed to testify against former KPMG executives facing criminal charges related to the shelters in a trial scheduled for September.

• Thomas Piketty & Emmanuel Saez, How the Income Share of Top 1% of Families Has Increased Dramatically:

[O]ur work has shown the top 1% income share has increased dramatically in recent decades and has reached levels not seen since before World War II and even since before the Great Depression when including capital gains. The reduction in taxes at the top since 2001 has mechanically exacerbated the discrepancy in disposable income between the rich and the rest of us. Thus, it is obvious that the progressive income tax should be the central element of the debate when thinking about what to do about the increase in inequality.

Washington Post:

• Stephen Barr, Tax Collection Debate Is a Product of Budget Battles:

There always seems to be a disagreement over the numbers in government reports these days. Take the latest dispute over how many Internal Revenue Service employees it takes to monitor private tax collection efforts:

• Michelle Singletary, Your Tax Return, With Some Change:

Tax time is near, and you know what that means, right? It means changes — and lots of them. Why must we poor taxpayers have to put up with this constant tinkering of the code?