The full cost of a tax system is more than simply the amount of tax paid. It also includes the cost of tax planning and paperwork. Economists call these "tax compliance" costs, and the IRS estimates Americans spend 6.6 billion hours per year filling out tax forms—including 1.6 billion hours on the 1040 form alone.
Questions about tax complexity and compliance costs? Contact us at (202) 464-6200.
As of December 4, 2013, 22 states are full members of the Streamlined Sales Tax Project (SSTP), while two states are associate members and 26 states and the District of Columbia do not participate in the project.
Yesterday the Treasury Inspector General for Tax Administration released a report on the need to strengthen anti-fraud protection in the system that will deliver Obamacare’s premium subsidies. Roughly, the problem is...