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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (28880)	9/19/2006 11:56:39 PM
From: neolib	Respond to of 541114

Thanks for that link, it was interesting and informative. Clearly one would not want to mix those two metrics in a study (BEA & CPS) Yipes though, did you catch this on page 10: BEA adjusts for income earned, but not reported on tax returns, by adding an estimate of "misreporting”. The adjustment is an extrapolation based primarily on the 1988 Taxpayer Compliance Measurement Program (TCMP) audit, 1999 exact match study, and current activity indicators, such as the Census Bureau’s value of new construction. Proprietors’ income has been consistently underreported to the IRS. The last TCMP audit estimated that proprietors’ actual income was more than double levels reported on tax returns (Landefeld and Fraumeni, p. 33). The 2001 proprietors’ income misreporting adjustment accounts for 42 percent of proprietors' state personal income and 49 percent of SPI-derived proprietors’ money income in 2001.