State and local governments could lose out on billions of dollars in tax revenue as a result of deep cuts to the IRS enforcement budget and mass departures of agency officials, a tax policy researcher told state administrators Tuesday.
A potential $4 billion cut to the IRS enforcement budget—resulting in fewer audits of high-income individuals and corporations—would lead to federal revenue losses of $56.8 billion, according to the preliminary results of an upcoming research paper by Carl Davis, research director for the Institute on Taxation and Economic Policy.
Those losses would flow through ...