The word from Congress watchers is that there will be action against tax evasion
Feb 2, 2007
There is movement on the Hill to go after tax shelters and enforcement against tax cheats. With acute budget pressures, the time is ripe. The Democrats are in a box. They have promised to eliminate the deficit, not raise taxes, to expand health care and more for Americans. Nobody is going to press for tax increases. The only place to find cash is the tax gap, to figure out how to go after the corporations and people who cheat. Members of Congress are actively talking about the problem.
Legislation is coming out of the Senate. Senator Carl Levin is pushing the idea of criminalizing the proceeds of tax evasion, which would be remarkable. The House Banking Committee will have bills. There is likely to be something out of Finance and Ways and Means
At the same time there will be New York indictments on tax shelter cases involving the accounting firm Ernest & Young. But just as in earlier case, the Bush Justice Department conspicuously fails to indict those who bought the shelters. The line is, “You rich guys: If you did this, it‘s not your fault. The lawyers and accountants made you do it.”