IRS & CPA Bureaucracy Cost Tax Payers $431 Billion Each YearSubmitted by bobbyw24 on Mon, 04/18/2011 - 12:25
Hmmm . . . .I wonder why the 16th Amendment will never be repealed
Arthur B. Laffer
April 18, 2011
There is a lot more to taxes than simply paying the bill. Taxpayers must spend significantly more than $1 in order to provide $1 of income-tax revenue to the federal government.
To start with, individuals and businesses must pay the government the $1 in revenue plus the costs of their own time spent filing and complying with the tax code; plus the tax collection costs of the IRS; plus the tax compliance outlays that individuals and businesses pay to help them file their taxes.
In a study published last week by the Laffer Center, my colleagues Wayne Winegarden, John Childs and I estimate that these costs alone are a staggering $431 billion annually. This is a cost markup of 30 cents on every dollar paid in taxes. And this is not even a complete accounting of the costs of tax complexity.