Compliance cost of the US Federal tax code: over $300billion/year

Things are hectic in realspace. Here, via Insty, is a video on the “compliance costs” resulting from the ever-more-Byzantine US Federal tax code.

This is quite separate from whether the tax burden itself is too high or low: Israel, for example, has much higher tax rates than the USA  but (at least for salaried employees) the compliance costs are quite low because the relevant tax code is very simple (in fact, so simple that most Israeli employees never file a tax return — let alone pay a tax consultant — as the automatic withholdings are almost invariably correct, and only very limited deduction opportunities exist). The country’s tax burden itself is arguably more onerous than that of the USA, but its compliance burden much lighter.

Anyway, we embed, you decide. And a flip side of a radically simplified tax code would of course be a death blow to an entire service industry — then again, the same would be true of inventing immortality treatments 😉

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