The Taxation Economy
It Costs More than it Raises
A NATION OF UNPAID BUREAUCRATS
According to the March 14, 1999, edition of Doug Fiedorís newsletter Heads
Up, the IRS publishes 480 tax forms and 280 forms to explain them, sending
out eight billion pages of forms and instructions each year which, if laid end
to end, would circle the earth 28 times. Nearly 300,000 trees are cut down each
year to produce the paper on which IRS forms and instructions are printed. Each
year, Americans devote 5.4 billion hours complying with the tax code, which
is more time than it takes to build every car, truck and van produced in the
United States. The cost of complying with the tax system totals about $200 billion
annually, or $700 for every person in America. The corporate income tax costs
the economy more in lost production than it raises in revenue for the Treasury.
Dale Jorgenson, the chairman of the Economics Department at Harvard University,
found that each extra dollar the government raises through the current system
costs the economy $1.39.
Doug gives details of a bill before Congress for replacing
this monstrosity with a flat tax of 17% on all income, with a
family of four paying no tax on the first $35,400 of their income. This is from
the same newsletter that was talking about the sellout of strategic defense
technology to China a year before the general media picked it up.