Tax gap costing all Californians

March 13, 2012

Potential tax dollars lost to the “underground economy” deprives California’s coffers of as much as $10 billion annually, a study by the state’s Franchise Tax Board suggests.

Other tax-avoiding techniques contribute to the deficit, the study notes, such as non-filing of tax returns, misstatement of deductions and simple tax evasion.

Tax agency officials said the data was derived from Internal Revenue Service records.

The so-call “tax gap” is twice the amount Gov. Jerry Brown wants to raise through his proposed tax increase ballot attempt.

According to FTB officials, the widespread practice of avoidance costs other California residents who must shoulder a larger share of the tax load, receive fewer services and benefits, and endure larger and larger budget deficits.

The report’s authors said that dealing with the so-called ”tax gap” is important “because it causes other Californians to bear the additional load of higher taxes, less services, and bigger deficits. The Tax Gap also undermines honest taxpayers’ sense of equity in our tax system and places honest businesses at a competitive disadvantage.”


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30 Comments

  1. Gsan says:

    According to recent reports this fleeing is indeed coming to pass.
    http://calcoastnews.com/2010/05/study-california-global-warming-law-could-cause-businesses-to-flee/

    (2) 2 Total Votes - 2 up - 0 down
  2. Slowerfaster says:

    Is it not CURIOUS how the petit-fascists always SWARM and support each other here ?
    they denounce collectivism, but operate as a GANG ! Almost like they have NO independent thinking ability…only as a hive, a bunch of meat puppets !

    (-9) 13 Total Votes - 2 up - 11 down
    • Robert1 says:

      Is it lonely in your small hateful world??????
      Is everyone and every thing out to GET you????
      Whooooo !!

      (5) 7 Total Votes - 6 up - 1 down
  3. jlwils says:

    Another reason for the fair tax system. It’s time for the less to pay more.

    (11) 15 Total Votes - 13 up - 2 down
    • Slowerfaster says:

      What a bunch of HOGWASH !

      It’s the AFFLUENT evading and avoiding taxes that are the cause of ‘unfairness’.

      How are you going to make “the less” pay more , arsehole ? If they DON’T have the money, or the means, do you want to make them SLAVES ?
      I think you do.

      Thjt makes YOU a traitor to America, in my estimation…and worthy of a yardarm !

      (-10) 14 Total Votes - 2 up - 12 down
      • Robert1 says:

        Looks like someones “entitlements” are being reduced !

        (3) 9 Total Votes - 6 up - 3 down
  4. The Gimlet Eye says:

    Trillions of dollars are missing from the US government. What’s going on? Where is the money? How could this happen? Where are the checks and balances? How much more has gone missing? What would happen if a corporation failed to pass an audit like this? Or a taxpayer? Who is responsible for this? Would your banks continue to handle your bank account if you behaved like this? Would your investors continue to buy your securities if you behaved like this? Learn more in the articles below.

    http://solari.com/articles/missing_money/

    (7) 9 Total Votes - 8 up - 1 down
    • Slowerfaster says:

      You going to go after the the rich corporatists ? The .001% ?

      I don’t think so.

      Another mealy-mouthed apologist for the ruling class, a house slave.

      Enjoy your servitude..for the time being.

      (-8) 12 Total Votes - 2 up - 10 down
  5. rogerfreberg says:

    the so-called ‘underground economy’ is basically average folks trying to make ends meet without sinking further into debt.

    Have you heard about the new IRS form “K”? This allows YOU to pay for the money you make on the internet and ebay, for example.

    If you take the time to drive around Washington, D.C…. check out the homes or mansions… it will disgust you. This is where your money is ‘working.’

    (16) 18 Total Votes - 17 up - 1 down
  6. sloweb says:

    The funniest (in an ironic way) thing that I have ever heard in my 60 years in this state, was when I found out that “they” named it State Board of Equalization.

    That obscene creativity is only slightly more than the creativity that the state has used to circumvent the intentions of Prop 13.

    (12) 12 Total Votes - 12 up - 0 down

Comments are closed.