Good Morning Gentle Readers,
I'll be brief this morning, mostly because it's been a long day already and there's more to come.
Taxpayer compliance cost in 2002 was 20.4 cents per dollar raised for the treasury. For tax year 2004 it bumped up to 22 cents and a decade from now, compliance is expected to cost one third of every dollar raised.
As substantial as that burden is, it does not include the cost of tax planning or any state tax compliance costs. It's just the cost of filling out tax and information returns of all types (business, personal, payroll, non-profit, etc) for the federales.
Not surprisingly, the majority of compliance costs were incurred by business, but individuals are by no means spared the hassle and cost of compliance.
According to the Tax Foundation:
If Americans were able to save the $265 billion in tax compliance costs and spend the money elsewhere, it could pay for any of the following:
- The combined budget of the Departments of Education, Homeland Security, Justice, Treasury, Labor, Transportation, Veterans Affairs, Health and Human Services and NASA
- More than half of the U.S. defense budget
- One laptop computer for every American
- Four iPod nanos for every American
- A 6-month supply of Denny’s Grand Slam Breakfasts for every American
- One treadmill for every American—to help work off any Denny’s breakfasts
We Report. You Decipher.