Thursday, January 12, 2006

Tax Time

The high cost of paying your taxes.

MP3 File

For every dollar you spend on federal income spend about 22-cents just following the tax law.

That's what the Tax Foundation found out in a study of tax compliance.

The study figures we spent a total of six billion hours last year to comply with the federal tax code -- looking for deductions, keeping records, filling out your 1040.

The foundation figures an average cost of around forty to forty-eight dollars an hour in complying with tax rules.

That's cheap if you've priced a tax accountant lately.

But applying that rate to individuals, businesses, and non-profit groups...that adds up to more than $265-billion we spend...just to do our taxes.

How much is that?

Try more money than Wal-Mart took in last year -- about $6 billion more.

And it'd take 2.8 million people -- more than the population of Dallas, Detroit, and Washington, DC combined -- working 40 hour weeks to put in those six billion hours.

That's more people that what work in the auto making, computer building, airplane manufacturing, and steel industries combined.

Maybe I'll see if I can use the short form this year.

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