To the editor:
"Tis the season." Tax season that is, and time to waste our time again.
A 2011 study by noted economist Art Laffer(1) estimates that U.S. taxpayers wasted 3.16 billion hours and shelled out $431.1 billion just to comply with the income tax code. This excludes the opportunity costs due to lost productivity, and it costs our economy $216.2 billion annually.
With approximately 140 million tax payers in the U.S., on average each tax payer wastes 23 hours per year pulling together and filing their taxes. Though the odds of being audited are small, we know with over 75,000 pages of tax code that the return we file is wrong and if audited we'll pay one way or another. May the odds be ever in our favor...
There is a better solution. Switch from an income tax to a consumption tax. This would eliminate the need to file taxes - you would pay your tax when you buy something. This would encourage people to work and save their money. Make it fair by excluding tax on essential spending like food, clothing, shelter.
That better solution is HR25/S122 - the FairTax. It would also create millions of new jobs, tax the shadow economy on their spending, and level the playing field for US companies competing in a global marketplace. It would also eliminate the IRS.
Stop wasting our time. Pass the FairTax