Tax Compliance Cost an Important Aspect of Tax Policy

Tax compliance costs are an important aspect of tax policies. This is because it is related to tax compliance and government income. For individuals or corporate taxpayers, unnecessary compliance costs can adversely affect tax compliance, ultimately leading to tax cuts. Tax compliance costs are one of the determinants of tax compliance behavior. Unnecessarily high tax compliance costs can lead to intentional or unintentional violations.

The first relates to tax management and compliance costs. Tax efficiency is related to the convenience and certainty of taxpayers' taxes and the cost of tax collection and tax compliance. An effective tax system will be charged and enforced at the lowest possible cost, without paying excessive costs for taxpayers to pay taxes. Of course, the administrative expenses of individual tax vary. Some types of tax management expenses will be higher than other taxes. Although the cost of collecting and executing federal income tax is high, there is no practical basis for making objective decisions, but these costs are not high as a percentage of income. Regarding the cost of tax compliance, for some taxes, they are very high, they seem low enough that there is little need to emphasize.

These regulatory costs are part of the process regulation or annual expenditure related to the government's administrative processing requirement of $ 199 billion, primarily aimed at compliance with tax laws. However, tax compliance costs do not necessarily represent efficiency costs, as it is necessary to evaluate the impact on efficiency considering all aspects of the tax system. Nevertheless, shear rate of process cost suggests that administrative processing can be greatly reduced while increasing efficiency. If such regulatory compliance expenses are equally shared and directly billed, rather than being imposed on the project, each US Household will have a cash tax of $ 5,683 ($ 1991) per year to put these numbers in the background You will receive it. Viewed another way, the total expenditure of the federal government in 1991 was about 120 billion dollars, about twice the total monitoring expenses.

Income tax for 2015 accounts for approximately $ 350 billion in total revenue and about 11% of total revenue despite its complexity and compliance costs. Corporate profits and stock price rise are taxed on an individual level 11. However, most observers believe that corporate income taxes are not completely politically eliminated. It is possible in the near future. This brings another possibility: the national consumption tax