Final answer:
The taxation concept that evaluates the cost of administering tax law is the principle of efficiency. It focuses on minimizing the societal cost of raising government revenue. Congress's larger budget for the IRS aims to enhance tax enforcement and administration, potentially increasing efficiency by reducing tax evasion and maximizing revenue.
Step-by-step explanation:
The taxation concept that evaluates the cost of administering our tax law is the principle of efficiency in taxation. According to this principle, a tax system should minimize the cost to society of raising government revenue. The cost of administration which includes the resources spent by the government on tax enforcement, such as auditing, is a crucial factor in assessing the efficiency of a tax system.
When Congress approves a new, larger budget for the IRS (Internal Revenue Service), they are addressing issues of tax enforcement and administration efficiency. The elasticity of tax collections with respect to spending on tax enforcement is a concept that examines the return on investment when more resources are allocated to the IRS. If the IRS has more resources for tax enforcement, this can lead to a reduction in tax evasion and therefore potentially increase overall tax collections, making tax administration more efficient.
The goal is to strike a balance where the cost of enforcing and collecting taxes does not outweigh the additional revenue generated from such enforcement. In other words, the government seeks to maximize compliance and revenue while minimizing administrative costs, thereby upholding the efficiency of the tax system.