On Dec. 6 a reader wrote how he doubted if the Fair Tax crowd prepared their own tax returns or it was probably the 1040ez or maybe H&R Block did their returns. He had worked for H&R Block. He said the tax code can fit on a note card but it is the exemptions that fill thousands of pages. The writer made it seem as if income tax forms are easy to fill out and file so the cost was not a factor.
Why do taxpayers pay H&R Block four billion dollars each year to do their taxes (H&R Block's last four-year average revenue)? I don't think Warren Buffett had H&R do his taxes. Those $4 billion each year came from lower (than Buffett) income taxpayers.
We are paying an estimated $300 billion each year to file our taxes. Included in the Fair Tax rate is one-fourth of one percent to pay businesses to collect the taxes and one-fourth of 1 percent to pay the state agencies to oversee and audit these businesses in their state.
To say our present tax collection system does not cost very much is not true.
Can we not find a more efficient tax collection system than the one we are using now? The Fair Tax would save taxpayers $300 billion each year in compliance costs.