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UC Law Journal

Authors

Emma Braden

Abstract

A functioning government requires tax revenue, and democratic legitimacy requires a nation’s leaders be subject to the same laws as its citizens. The president’s tax behavior is an opportunity to address both needs. With a projected increase in the tax gap, there is a need for a politically viable, cost-effective way to increase revenues. In December 2022, the House Ways and Means Committee released a report revealing that the IRS failed to perform mandatory annual audits of former President Donald Trump’s taxes. The revelation imperils public trust in tax administration, requiring a new approach to guarantee accountability for a president’s tax behavior. Thus far, discussion of Trump’s taxes has focused on voluntary disclosure and possible repercussions for Trump himself. This Note is novel in its focus on the presidential audit and its proposed implications for tax morale. First, it establishes the symbolic significance of presidents’ tax behavior and the power of tax morale to increase tax compliance. Then, the Note proposes a codified mandatory presidential audit that maximizes the impact of the audit on taxpayers’ compliance.

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