September 17, 2009
Stateline.org Article Quotes Tax Foundation Analyst Justin Higginbottom on Tax Amnesty Programs
"States forgive penalties, reap late taxes"
By Matt Lewis
State legislators looking for extra money to balance their budgets are historically quick to forgive penalties for tax delinquents, provided they pay their back taxes during these amnesty periods. Twelve states are offering programs this year, including two - Hawaii and Oregon - that are holding amnesties for the first time. ...
"It's a short burst of money, so it makes sense they have them during a recession," said Justin Higginbottom, a tax analyst for the non-partisan Tax Foundation. "It's not going to give you a lot of money, but if you're looking for a couple million on a short-term, it is likely to give you that." ...
Higginbottom of the Tax Foundation said people often had honest reasons for not filing taxes or for filing incomplete forms. "They might not know they are not paying their taxes or they may not be doing it on purpose. They may be confused or just forget," he said. The tax code might be too complex, he said, or hiring someone to help might cost too much.
"States should focus on reducing the compliance costs if they want people to pay more in taxes," he said.
