The Government's 600 Billion Dollar Tax Gap

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Jul 30, 2026 · 6m · transcript

Each year, the U.S. government fails to collect roughly $600 billion in taxes owed—a sum larger than the entire defense budget of many countries. In this episode, Lucas and Luna break down what drives the tax gap: underfunded enforcement, complex tax shelters, and the ongoing battle over IRS funding. They examine a specific case of offshore evasion and discuss how recent budget cuts threaten to widen the gap. If you've ever wondered why the government can't seem to collect what it's owed, this episode offers a clear, data-driven look at one of fiscal policy's biggest blind…