Literature review · Senior year · In progress
A review on tax policy and its impact on revenue
My review explores how federal income tax enforcement policies affect revenue, including audits, enforcement costs, and tax evasion. It considers how allocating IRS resources effectively can balance revenue, costs, and economic welfare.
The research reviewed suggests audits can generate more revenue than they cost and encourage longer-term compliance, with high-income audits potentially yielding greater revenue.
$2.17 per $1Average return from IRS audits cited in the review.
High-income auditsCan yield greater revenue, according to the review.
Long-term complianceAudits can also encourage future tax compliance.