Connecticut's $3B Tax Gap: A Transparency Model

0:00Connecticut's sitting on a massive $3 billion tax gap, the difference between what folks owe the state and what it actually collects. That's from 2022 data, and it's about 13 percent of the state's total budget revenues. Most other states don't even track this issue, but Connecticut's one of the few pushing to fix it. Last year, lawmakers and governor Ned Lamont greenlit the administration to measure this gap every year and come up with plans to shrink it. They set up a new discovery unit in the Department of Revenue Services to hunt down non-filers, ramp up audits, and nudge delinquent taxpayers to pay. Jump up. This gap matches with the state's spins on Medicaid alone, and experts say closing even a few percentage points could mean lower taxes in good times, or dodging cuts in bad ones. Groups like Connecticut voices for children are calling for harder pushes, especially with federal aid shrinking. Meanwhile, challenges keep piling up. A recent survey shows state tax departments struggling with hiring and retention, with

1:01a third of workers over 55 years old. The IRS, which feeds state's key data, faces its own staffing cuts, making tracking even tougher. Connecticut's next tax gap report drops in December, and officials are touting their transparency as a model while teams keep grinding to collect. What's old? Stay informed with Hartford News today. AI-powered updates. I'm Corey with the story.