Americans will Spend Almost 9 Billion Hours Complying with the Tax Code
According to the latest research conducted by the Tax Foundation, Americans will spend over 8.9 billion hours complying with IRS tax filing requirements in 2016, costing the U.S. economy over $400 billion.
The ridiculous amount of wasted time and resources is larger due to the “growing complexity of the U.S. tax code” which has led to a “large compliance cost for households and businesses.” According to the Tax Foundation, the federal tax code has increased from 409,000 words in 1955 to 2.4 million words today.
For U.S. business owners this report is especially alarming considering the fact that the largest burden of tax code complexity, in terms of time and resources, falls on them. American businesses spend 2.8 billion hours and $147 million complying with taxes. This number is up significantly from just last year as the IRS recently revised its estimate of the hours required to comply with business tax returns from 363 million to 2.8 billion!
In order to create an environment where businesses can grow and provide more employment opportunities, Congress must pass pro-grow comprehensive tax reform that lowers and flattens rates, encourages saving and investment, but also reduces tax code complexity. The recent House Republican blueprint for comprehensive tax reform is a positive starting point to work with.