The Internal Revenue Service must maneuver between congressional pressure to collect all taxes due, and the need to avoid harassing tactics and overstepping its bounds.

Nevertheless, it still falls short in collections.

• According to the latest estimates, in 1992 it collected between 83.1 percent and 83.6 percent of individual income tax revenue it believed was due.

• For corporate taxes, the amount was between 81.1 percent and 88.1 percent.

• This left a gap of between $110.1 billion and $127 billion uncollected.

• Some three-quarters of the gap in individual tax collections came from unreported income -- mainly from those who were self-employed.

Tax rates play a crucial role in compliance. Studies show that the higher tax rates are, the greater tax evasion is. Lower rates reduce the incentive to evade.

Thus, tax cuts might do more to increase compliance than hordes of new IRS agents.

Source: Bruce Bartlett (National Center for Policy Analysis), "The Tax Increase Backlash," Washington Times, April 15, 1996.