It’s kind of disgusting that when Congress talks about raising tax revenue, all the CBO thinks about and includes in their analyses is gross revenue. They don’t think about the costs of what the IRS, agencies, businesses, and taxpayers need to do to implement the policies that were created in order to raise that revenue. Those costs should always be factored in the computation and subsequently deducted to arrive at net revenue raised..
What’s happening now is that the compliance costs are not being considered. Congress says, for instance, that something will raise “$50 billion dollars” but then ignores that the complications, regulation issuance costs, compliance and other implementation expenses that will arise may cost $30 billion. So only $20 billion is actually raised. These hidden but true costs have to be included and come out of the CBO revenue forecast if we are to craft realistic, equitable, and efficient tax policy