Working Paper: NBER ID: w31944
Authors: Youssef Benzarti; Luisa Wallossek
Abstract: This paper provides novel estimates on the cost of filing taxes over time and in different countries. First, we ran a survey of US taxpayers. We find that taxpayers perceive that tax complexity and filing costs have been increasing and that the majority would be willing to pay for simplifying the tax system and adopting pre-populated tax returns. Second, we use word counts of the tax codes in several countries dating as far back as the early 1980’s as a proxy for tax compliance costs. This measure shows that compliance costs have been steadily increasing.
Keywords: No keywords provided
JEL Codes: H0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| perceived complexity of the tax code (H26) | willingness to pay for simplification (D11) |
| increased complexity (F12) | perception of unfairness (D63) |
| increased complexity (F12) | higher evasion rates (H26) |
| higher evasion rates (H26) | perception of unfairness (D63) |
| perceived complexity of the tax code (H26) | increased complexity (F12) |