Finance Committee Chairman Max Baucus agreed to grant additional time for receiving the Treasury Department’s updated strategy for reducing the $345 billion annual “tax gap." At a Finance Committee Hearing on April 18, Baucus asked Secretary Paulson to provide the Committee with an expanded and more detailed plan by July 18 that would achieve a ninetypercent voluntary tax compliance rate within ten years. Today, the Secretary wrote Chairman Baucus and indicated an updated strategy for reducing the tax gap would be completed within the next few weeks. Upon receipt of the Secretary’s letter, Baucus made the following comment:
“Increasing voluntary compliance is essential to a tax system that is fair to all Americans. I am encouraged that the Treasury Department has made considerable progress toward meeting my request for a comprehensive and credible plan with specific objectives and targeted completion dates. I’d rather the Treasury Department take the time necessary to get it right than to provide the Committee with an incomplete plan. I am committed to working with the Secretary to improve tax compliance and significantly reduce the tax gap."
Source: Ranking Member’s News
