Income Tax Prep A $1 Trillion Drag on Economy – IOTW Report

Income Tax Prep A $1 Trillion Drag on Economy

The Tax Revolution Institute has estimated that complying with all the provisions of our current federal income tax codes cost the nation upwards of $1 trillion a year.  That’s money expended before dime one goes to the feds.

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Why do we put up with this mess?

12 Comments on Income Tax Prep A $1 Trillion Drag on Economy

  1. Laws, codes, regulations, rules and guidelines.
    There’s many arguments about the size of the Tax Code, but there are no arguments about its complexity.
    The overriding concern of many citizens is the Fear of the IRS.

    It’s easier to pay a tax preparer to ensure you don’t face financial ruin, particularly when the IRS has become the political hammer in the hands of the democrat party and the increasing size of government out paces revenue.

    77 million American households do not pay federal individual income taxes ( Citing data from the Tax Policy Center, an estimated 45.3 percent of American households)

    A fair and just tax system? Not by a long shot.

  2. For what it’s worth, I run my finances through Turbo Tax every year to compute my estimated taxes, but I pay a CPA $500 to $600 to do my taxes in April and he always sames me thousands over that self help program. My stuff is complicated, sure, but who’s isn’t these days.

  3. Drain the corruption at the IRS. Flat tax. Few deductions. No CPAs, just bookkeepers. No tax lawyers, just a tax court that civilians can appear in representing themselves. Put the IRS agents that were breaking the law in jail. God speed, Donald Trump.

  4. @Rat Fink, that’s not how the current system works. Most people file their income tax to get their withholding back.

    For most people the government already took more out of the paycheck than they were entitled too, the tax code makes it hard for us to get all our money back from them (after they’ve held it for months).

  5. Flat tax on wage earners based on income and number of dependents.
    Collected/withheld by employer.
    No tax returns, no refunds, no last minute scrambling.
    No tax preparers– it’s done.

    Not sure what to do about dividend and interest income, self-employed or corporations, but this should be a step in the right direction.

  6. AA major hurdle to overcome is congress extorts a lot of money and power to manipulate the tax code. The Founding Fathers instituted a head tax. That is the only Constitutional tax.

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