United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2006-08-03 monographic deposited born digital 29 p. GA 1.13:GAO-06-1028T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-06-1028T P0b002ee180377bed f:d061028t DGPO 2010-08-12 2011-03-24 GAOREPORTS-GAO-06-1028T machine generated eng fdlp REPORT GAOREPORTS-GAO-06-1028T GAO-06-1028T Budget deficit Consumption taxes Federal taxes Fiscal policies Income taxes Noncompliance Personal income taxes Tax administration systems Tax violations Taxes Tax gap Testimony A57940 The federal government currently relies heavily on the individual income tax and payroll taxes for about 80 percent of its total annual revenue. Long-range projections show that without some form of policy change, the gap between revenues and spending will increasingly widen. The debate about the future tax system is partly about whether the goals for the nation's tax system can be best achieved by reforming the current income tax so that it has a broader base and flatter rate schedule, or switching to some form of consumption tax. This testimony reviews the revenue contribution of the current individual income tax as well as its complexity, economic efficiency, equity, and taxpayer compliance issues; discusses some common dimensions to compare tax proposals; and draws some conclusions for tax reform. This statement is based on previously published GAO work and reviews of relevant literature. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-06-1028T/html/GAOREPORTS-GAO-06-1028T.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-06-1028T/pdf/GAOREPORTS-GAO-06-1028T.pdf GAO-06-1028T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-06-1028T Testimony GAO-06-1028T; Individual Income Tax Policy: Streamlining, Simplification, and Additional Reforms Are Desirable; Budget deficit Consumption taxes Federal taxes Fiscal policies Income taxes Noncompliance Personal income taxes Tax administration systems Tax violations Taxes Tax gap