Former U.S. Treasury Secretary Summers: IRS layoffs could cost the government $1 trillion in lost revenue
Internet reports that former U.S. Treasury Secretary Lawrence Summers said that the Trump administration's move to reduce the size of the Internal Revenue Service (IRS) and a series of other policy changes may encourage taxpayers to reduce tax compliance, thereby allowing the federal government to lose as much as $1 trillion in revenue within a decade. Cutting IRS employees threatens "the foundation of the tax system, which is based on voluntary compliance," Summers said in an interview. Summers said he was analyzing the issue with colleagues. "I would be surprised if we didn't lose more than $1 trillion in revenue over the next decade because of this irresponsible and unfounded attack on the IRS," he said.
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