How much does the IRS spend to collect our income tax? Or to ask another way - What percent of the income tax collected is used to collect income tax?
Answer by Tom Lindholtz
I Googled "IRS Budget" -- $13.3 Billion -- less than 0.003%.
Something to consider as well is tax compliance costs-the costs associated with filing returns correctly. I've found estimates upwards of $300 billion but the IRS measures it in terms of hours lost-6.6 billion is their estimate. You can probably say that it's a negative externality with respect to the direct payment of taxes.