Summers Says ‘Attack’ on IRS May Risk a $1 Trillion Revenue Hit

Former Treasury Secretary Lawrence Summers said that the Trump administration’s moves to downsize the Internal Revenue Service, along with other changes, are likely to incentivize reduced tax-payment compliance — potentially costing the federal government $1 trillion in lost revenues over a decade.

“We are threatening the basis of our tax system, which is based on voluntary compliance,” with the efforts to slash the IRS’s staff, Summers said on Bloomberg Television’s Wall Street Week with David Westin.

Summers said he’s currently conducting analysis on the issue, along with colleagues he didn’t specify. “I’d be surprised if we’re not on a ...