MODEL BILLS

Tax Enforcement Fairness Act

Summary: The Tax Enforcement Fairness Act is a budget amendment that hires attorneys, investigators and staff for tax collection authorities to target tax evasion by very high-income individuals and corporations.

Explanation: Americans believe that rich individuals and big corporations do not pay their fair share in taxes. They overwhelmingly support fairer enforcement of the law, especially tax law. At the same time, conservatives are working to curtail tax enforcement, enabling even greater tax evasion by the wealthy. With good messaging, this legislation should be great policy that is also extremely popular.

SECTION 1. SHORT TITLE

This Act shall be called the “Tax Enforcement Fairness Act.”

SECTION 2. PURPOSE

This law is enacted to create a fairer tax system by cracking down on major tax evasion.

SECTION 3. TAX ENFORCEMENT FAIRNESS

After section XXX, the following new section XXX shall be inserted:

(A) DEFINITIONS—In this section, “major tax evasion” means incidents where there is a reasonable suspicion that individuals or corporations have illegally avoided the payment of taxes totaling at least $50,000.

(B) INCREASED ENFORCEMENT

1. The budget of the [Criminal Investigations Division of the Department of Taxation] shall be increased by [$10 million] to hire staff to investigate and prosecute major tax evasion.

2. These additional funds may be used to conduct basic investigations of alleged/suspected major tax evasion, including interviews of the subject and witnesses, collection of records from various governmental agencies, inspections and collection of physical evidence, search for witnesses and development of informants, cooperative work with other law enforcement agencies on joint operations, maintenance of relevant databases documenting evidence, preparation for any filings or appearances in court, and everything necessary to conduct successful criminal prosecutions.

3. The Department of Taxation shall report to the [legislature/council/commission] by October 1, 20XX on approximately how much additional revenue was generated by the addition of this investigatory and prosecutorial capacity.

SECTION 4. EFFECTIVE DATE

This law shall become effective on July 1, 20XX.