"From a policy perspective, our results highlight that there is substantial evasion at the top which requires administrative resources to detect and deter," the authors write.
"We estimate that 36% of federal income taxes unpaid are owed by the top 1% and that collecting all unpaid federal income tax from this group would increase federal revenues by about $175 billion annually.".
"There has been much discussion in the United States about the fact that the audit rate at the top of the income distribution has declined," the paper continues.
The IRS doesn't enforce tax laws when it comes the ultra-wealthy.
As a result, the paper's authors note, the incomes of the wealthiest people in the U.S. and the country's overall inequality are significantly underestimated.
The bill would invest in improvements to IRS technology, require audits of the richest individuals and corporations, and implement more strict income reporting requirements.
"We know our tax system is broken, and it's long past time we start fixing it," Khanna said in a statement. »