There have been several big legislative changes and proposals from D.C’s lawmakers over the past week. On June 30th, Washington D.C’s legislative council voted to allow several tax cuts to take effect in September ahead...
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- Resources for Federal Individual Income Tax Filers
Resources for Federal Individual Income Tax Filers
Over the last century the cost of complying with the federal income tax has risen drastically, due to the ever-increasing complexity of the tax code. In 2005 Americans spent an estimated 6 billion hours complying with the federal income tax code, with an estimated compliance cost of over $265.1 billion.
From Tax Foundation Special Report No. 138, The Rising Cost of Complying with the Federal Income Tax, which examines the cost of tax compliance in 2005:
This staggering economic cost can be illustrated by comparison. The $265.1 billion tax compliance cost is greater than the revenue of Wal-Mart ($259 billion), the largest company in America. Similarly, 6 billion hours per year represents a work force of over 2,884,000 people: larger than the populations of Dallas (1,210,393), Detroit (900,198) and Washington, D.C. (553,523) combined; more people than would reside in four Congressional districts; and more people than work in the auto industry, the computer manufacturing industry, the airline manufacturing industry, and the steel industry combined.
The only remedy to this problem will be fundamental tax reform that dramatically simplifies the tax code. In the meantime, to make filling out income tax forms seem a bit less complicated and arduous, we have posted a compilation of Tax Foundation studies, Tax Policy Blog posts, podcasts, newspaper articles, government Web sites, data--and even some tax humor--on the federal individual income tax.
Click here to view the list.
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The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.