The True Cost Of High Taxes

Arthur Laffer has an interesting column up today in which he attempts to quantify the actual costs of tax compliance in the U.S.  It is staggering.  Among other tidbits of information is this:

[A]s of 2009 the income-tax industry employed “more workers than are employed at the five biggest employers among Fortune 500 companies—more than all the workers at Wal-Mart Stores, United Parcel Service, McDonald’s, International Business Machines, and Citigroup combined.” Without diminishing in any way the professionalism of tax attorneys, accountants and financial planners, all of these efforts produce nothing other than, well, tax compliance.

The tax code absolutely needs to be reformed, with something approaching a revenue-neutral flat tax as the goal.  Republicans should embrace a general policy of (1) reform without net taxation, (2) broadening the tax base, (3) and eliminating special tax breaks to industry and favored special interests.

Published in: on April 18, 2011 at 12:08 pm  Leave a Comment  

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