The Effect of Tax Enforcement on Revenues

Janet Holtzblatt, senior fellow in the Tax Policy Center, testified before the Select Revenue Measures and Oversight subcommittees of House Ways and Means at a hearing on the tax gap and improving tax administration. The testimony focused on four key areas: the impact of reductions in the IRS’s budget over the last decade; research on revenue effects of increasing the IRS’s enforcement budget; the challenges faced by examiners; and the impact of sustained funding.