Tax Code Complexity Now Costs U.S. Economy up to $1 Trillion Annually

by | Dec 12, 2016

Tax Code Complexity Now Costs U.S. Economy up to $1 Trillion Annually

by | Dec 12, 2016

74,608 pages, 2.4 million words.

That is the present size of Title 26 of the U.S. Code, i.e. the “Internal Revenue Code.” One would think this would be nearly impossible for an enterprise wielding an army of tax experts to absorb, let alone the average taxpayer. However, it doesn’t stop there.

The IRS has added an additional 7.7 million words of tax regulations designed to clarify what the original 2.4 million words mean. You can’t make this stuff up. Add 60,000 pages of tax-related case law essential to accountants and tax lawyers, and the burden is revealed.

More than 10 million words with a hidden annual compliance cost of up to $1 trillion. This is what Title 26 of the U.S. code and the Federal Register is estimated to cost the United States economy each year.

audit-final

Data aggregated by Philip D. Schlosser. Design by Philip D. Schlosser and Andrew Hawks.

To put this into perspective, the Encyclopedia Britannica — 32 volumes that contain the general knowledge of man — is 44 million words in length. This means that in order to understand the federal tax code and its supplementary regulations in their entirety, one would have to absorb highly complex tax language that is nearly one quarter the length of the entire Encyclopedia Britannica.

Read the rest at TaxRevolution.us.

Our Books

Shop books published by the Libertarian Institute.

Podcasts

scotthortonshow logosq

coi banner sq2@0.5x

liberty weekly thumbnail

Don't Tread on Anyone Logo

313x0w (1)

313x0w (1)

313x0w (1)

Our Books

Recent Articles

Recent

TGIF: Trump Weighs in on Netflix, WBD, and CNN

TGIF: Trump Weighs in on Netflix, WBD, and CNN

The proposed merger of Netflix and Warner Bros. Discovery (WBD) "could be a problem," Donald Trump says, because Netflix has "a very big market share. When they have Warner Bros., that share goes up a lot." He said he would consult "some economists" on the matter,...

read more
Rose Wilder Lane, Frontier Prophet of Freedom

Rose Wilder Lane, Frontier Prophet of Freedom

On December 5, 1886, on a windswept homestead near De Smet in Dakota Territory, Rose Wilder Lane entered a world of adversity. She was the only surviving child of Laura Ingalls and Almanzo Wilder. Within a few short years her family’s cabin burned, her parents were...

read more

Pin It on Pinterest

Share This