Closing the Deficit by Effective Enforcement
2 -27-13 WOSO Commentary
In addition to reforming and updating our various tax laws,
we need to effectively enforce our existing laws. For example there are a large
number of properties that have been improved and have not been assessed. Surely
investing in bringing these properties into the tax system is an economic no
brainer.
The same can be said for the IVU or sales tax in which only
some 40 % comply whereas in the US this figure is in the mid 60%. Recently,
some businesses who have not deposited sales taxes collected have had their
bank accounts attached. This is a great
first step. When it is determined that this non deposit is intentional and
unjustified, then an effective second step is to bring a criminal action.
We all know that there is serious underreporting of income
in Puerto Rico. There needs to be put in place mechanisms to detect when income
reported does not match the wealth accumulated and the life style of the
taxpayer. I would require taxpayers to file under oath a simple balance sheet
describing as of December 31st their assets and liabilities similar
to what one provides a bank for a loan.
Effective enforcement of existing tax laws, including
criminal actions, will generate substantial revenue, ensure that everyone pays
their fair share, and convey the needed message that all laws need to be
obeyed.
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