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You realize it's much worse than that right? Because $10 billion is just the direct cost of those firms, not the opportunity cost or the social cost, nor even
by emn13 10y ago
You realize it's much worse than that right? Because $10 billion is just the direct cost of those firms, not the opportunity cost or the social cost, nor even the manhours and software cost. The six-billion man-hours alone I'd value at a ballback of $120 billion; though this is hard to truly estimate. Given that many figures simply assigned zero value time not spent working (and that's clearly nonsense), and that somebody earnign $20 is hopefully worth more; that sounds conservative to me.
Complex tax systems also encourage simply avoiding engaging in anything that would make tax burdens more difficult to figure; they cause stress (a public health issue that's still consistently ignored); and they encourage cooking the books to make life simpler - which in turn is an enabler for fraud.
The real-world cost of US tax complexity is likely at a bare minimum 100 billion dollars; possibly as much as 10 that; and that's excluding factors that are excluded from GDP; i.e. the value of things like lifestyle/stress but also more economic-oriented factors such as reduced economic agility.