The High Cost of Tax Preparation – Americans will spend about 4 billion hours this year filling out individual income tax forms. At the average hourly private industry compensation cost of $27.42, that time is worth about $110 billion, equivalent to almost the entire annual Gross State Product (GSP) of Kansas. Add to that the $30 billion the IRS estimates Americans will spend out-of-pocket on tax preparation (tax software programs, tax preparers, accountants etc.), and it’s equal to the $139 billion annual output of the state of Oklahoma.
Affiliation: University of Michigan
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.
He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.
Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.
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