This isn’t rocket science, folks. There is a solution to significantly reducing the deficit, but NO ONE is talking about it. In 2006, the IRS reports that $385,000,000,000 of taxes went uncollected.  These are tax dollars owed, as reported by individual taxpayers and corporations, but never paid. That amount of money, at that point in time, would have erased the deficit ($248.2 billion) with $136.8 billion left over. In 2001, the uncollected amount was $290 billion. Why is this collection rate only calculated every five years?

I’m astounded that such a poor effort is made to increase IRS collections beyond the level of 85.5%. Having served on a local school board, I know that taxing entities can never collect 100% of what is owed them. My school district calculates its income from the county at about 96% for that reason.

This story was buried in our daily newspaper and I heard no talk of it at all on television. If I were running for office, this would surely be one promise I would make. Collecting even 90% of the amount due to the IRS would be huge. How many schools could reduce class sizes with this money? How many school buildings could be repaired with this money? How many lives could be changed if only a fraction of these funds were recovered? I guess we’ll never know because no one seems to care. It’s shameful.

http://www.bloomberg.com/news/2012-01-06/irs-says-u-s-tax-compliance-gap-reached-385-billion-in-2006.html