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But for society, and the economy as a whole, these problems are "dead-weight loss" [0]. No productive output is created by jumping through the necessary hoops t
by PKop 11y ago
But for society, and the economy as a whole, these problems are "dead-weight loss" [0]. No productive output is created by jumping through the necessary hoops to comply with every increasing complexity.
And there are opportunity costs to spending time and money on tax / regulatory compliance vs. the actual business.
If your above statement was true, then wouldn't it be more true the more complexity we added to the system?
Maybe instead of working till the middle of April [1] to pay the government our tax bill, we could be working half the year.. or longer? Surely all of that complexity would create even more openings for businesses wanting to solve the complexity problem...
[0] https://en.wikipedia.org/wiki/Deadweight_loss https://en.wikipedia.org/wiki/Deadweight_loss
[1] http://taxfoundation.org/article/tax-freedom-day-2015-april-24th http://taxfoundation.org/article/tax-freedom-day-2015-april-...
- ThomPete 11y agoIt is true the more complexity we add to the system. The more complexity the more problems the more opportunity. Of course a system can be so complex that becomes unworkable. But technology allow us to take a lot of that cumbersome complexity and make it trivial. Denmark has one of the most streamlined and optimized tax-reporting systems yet you don't see it nourishing because of that.