Democrats are vigorously pursuing an agenda to raise state’s income by bridging tax gap, which has put them in direct confrontation with the Bush administration. Democrats are pressing the administration to take measures in the coming budget to extract the potentially huge amount of money that taxpayers hide for the Internal Revenue service. They have expressed that the government could collect as roughly around $100 billion a year by narrowing tax gap. The IRS has reported that the volume of the unpaid taxes generally on unreported earnings stand around $300 billion a year. However, the Treasury Department that oversees the IRS is of the view that it cannot practically recover one tenth as much as Democrats have suggested. The Treasury Department is likely to unveil many tough proposals to pursue tax cheats in the forthcoming President’s budget proposal. The IRS commissioner, Mark W. Everson, seems to be far more optimistic as he told lawmakers last year that the government could recover something between $50 billion and $100 billion a year without altering the dynamic between the IRS and the tax payers. In the meanwhile, officials have indicated that the fresh set of measures would help recovering less than $10 billion a year in extra revenue. As a better fact, Democrats are under tremendous need of the money since they have adopted a stringent ‘pay as you go’ budgeting rules. According to this rule, congress is required to pay for any new program initiated or tax cuts with revenue from other sources. However, in the present circumstances of the economy, the tax gap is of course a logical area to concentrate on for the purpose. In the meanwhile, officials have said that the democrats have exaggerated the amount of revenue they can recover. As of now, Democrats have offered only a few specific proposals and lawmakers are increasing refrain from commenting on the proposal as it can trigger a sharp political reactions.