by Caitlin Kenney

Former Federal Reserve Chairman Paul Volcker has been appointed to head a new tax-code review. The review, set to be completed by December 4, will make recommendations on how to simplify the code and close loopholes.

Budget Director Peter Orszag says the changes could help reduce tax evasion and "corporate welfare." Bloomberg reports:

"There are hundreds of billions of dollars in uncollected taxes each year," Orszag said in a conference call. The Volcker board "will be examining ways of being even more aggressive on reducing the tax gap."
 

The tax gap is the difference between the amount of taxes owed by taxpayers and companies and the amount collected. Orszag cited academic studies suggesting that the difference is $300 billion or more. That is " a lot of money," he said, adding that the administration is going to be "as aggressive as possible" in reducing it.

President Obama has been facing criticism from both Republicans and Democrats who say that his $3.6 trillion budget will push the country too deep debt. He is set to meet with Senate Democrats today to try to persuade them to support his spending plans.