Around 1 in 6 Americans Do Not Pay Their Taxes

With Only 1% of Individual Returns Being Audited and 16% of People Simply Not Paying Their Taxes, Will Even More People Stop Paying Too?

John C. A. Bambenek
According to an IRS spokesperson in an article about anti-war tax resistance, 16.3% of Americans are in non-compliance with their taxes according to the Associated Press. That isn't fudging the numbers or coming up with creative tax deductions; it's simply evading taxes outright. While the story about the anti-war movement calling on people to not pay taxes to protest the war is interesting, the fact that a growing number of Americans are simply evading taxes is startling.

According to IRS estimates, that means there is $345 billion in uncollected taxes per year or roughly 2.6% of the national GDP. As a result of collection efforts, the IRS has generated over $48 billion of that amount in 2006 (or about 15%) according to CNN. These estimates do not include corporations using tax shelters (which "legally" protect them from taxes) or the rich using similar tactics. In 2006, the IRS audited about 1.3 million tax returns out of 130 million filed or an audit rate of about 1% according to an IRS source quoted by CNN. With over 16% overtly flouting the IRS, at best only 1% of those will even be challenged.

The reasons individuals give for not paying taxes vary. There are those who protest the war or other actions of the government. The IRS considers those objections frivolous. There are a few who don't believe that the income tax amendment was passed properly. And then there are some who just don't want to pay taxes because they want that money. With a founding slogan of "no taxation without representation", the United States has a long history of hating taxes. The nation was founded on it.

Henry David Thoreau refused to pay taxes during the Mexican-American war and many Vietnam war protestors such as Joan Baez did not pay taxes during that time either.

As a response to the growing tax gap (the amount of taxes that should be collected compared to what actually is collected) the IRS has started to employ debt collectors to go after the "easy" cases where the amount owed is low and the taxpayer doesn't dispute the debt. However, the tax gap has been growing and the money available for enforcement has either not kept up with it or has in some cases even been cut. As fewer and fewer people get prosecuted for tax evasion, more and more individuals will likely feel safe in either "embellishing" details to reduce their taxes or simply not pay them all together.

Published by John C. A. Bambenek

Freelance journalist and columnist John Bambenek writes on technology, current events, politics and foreign affairs from a paleoconservative slant.   View profile

21 Comments

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  • Andy 11/28/2011

    I am tired of paying taxes so that those who dont try to improve themselves can sit on their A$& and live off of us. At some point the burden will break the backs of the people who are working and TRYING to improve themselves. Then what will their lazy A$& do?

  • j unit 4/10/2010

    yea screw the gov't Im never paying taxes to the feds again!!! I will state though.

  • resist 1/9/2010

    you tax money goes to support. fascism.. do some investigation!!! . . .like darren said the tax code is voluntary!

    but, so is being a loyal sheep!

  • Informed American 12/5/2009

    hey moron writer... 70% of US corporations don't pay taxes... do some due dilligence and stop making a sad fool of yourself, corporatist schmuck...

  • Darren 5/17/2009

    Use your mind wisely. Don't pay a voluntary income tax. There is NO LAW stating you have to pay it. The IRS is NOT a US government agency..more like the IMF. If you wanna be part of the HERD, then pay your income tax.

  • AngelKitty1441S2 4/8/2009

    Good advice.

  • Tax Expert 12/29/2008

    There are ways to minimize the amount of taxes you pay. My wife and I together earn about $150k a year and paid a total of $1,345.50 last year in taxes. And guess what folks, it's all legal. The government can continue to fund all these companies with the $700 billion in bailout money but I'm able to sleep at night knowing less than 1% of our gross income is going to their coffers. We give more to our church than to the government!!

  • Susan Anderson 12/25/2008

    I don't see how so many can get by with this!

  • Andrew Mauthe 10/27/2008

    "No taxation without representation" was the cry from the people against the British. This was the begining of a new nation the likes of which had never been seen. As long as the people keep electing those who see themselves as the great provider and smarter than the rest will keep taxing for all and any reason. Only the people can make the change!

  • Douglas G. 8/9/2008

    Personally, I am planning to become a citizen of Amsterdam, and living and working there where taxes are at their lowest in the world if I am correct. If I could just walk into an office in the United States and say hey there is nothing your government does for me (or anyone for that matter) and I want to denounce my citizenship and stop paying taxes while living in the US that would be fine, but no they want to steal your money so "hate it and leave it" I say. The worst part about paying taxes in the US is it is being used to line the pockets of politicians instead of building on public services that truly help people. The US federal government is nothing but a thief in my opinion, and for that damn their hands, their wallets, their purses, and the fact that they would jail you for non-compliance. If they have to throw people in jail for not paying taxes, they probably aren't what the people want anyway.

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