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

Recent Articles

Recent

The Horn of Africa Is Ready to Explode

The Horn of Africa Is Ready to Explode

Though the dust from the devastating Tigray War of 2020–2022 has barely settled, the Horn of Africa once again appears to be drifting toward catastrophe. Recent developments suggest a growing risk of renewed conflict involving Ethiopia’s federal government, the Tigray...

read more
40 Years of Endless War, Data Point by Data Point

40 Years of Endless War, Data Point by Data Point

Dinosaur GenXers like me recall that after the fall of the Berlin Wall, the foreign policy set was busy asking how the United States would cash its forthcoming "peace dividend," whether NATO would fold up shop having achieved its ostensible purpose, and maybe whether...

read more

Pin It on Pinterest

Share This