Code for How Taxing Is Tax Filing? Using Revealed Preferences to Estimate Compliance Costs
- Benzarti, Youssef (UCSB and NBER)
AbstractThis paper uses a quasi-experimental design to estimate the cost of filing taxes. Using US tax returns, I observe how taxpayers choose between itemizing deductions and claiming the standard deduction. Taxpayers forgo large tax savings to avoid compliance costs, which provides a revealed preference estimate of such costs. I show that costs increase with income, consistent with an opportunity cost of time explanation. These estimates suggest substantial costs of filing federal income taxes, significantly larger than previously es- timated using surveys.
1960-01-01 / 2009-12-31Time Period: Fri Jan 01 00:00:00 EST 1960--Thu Dec 31 00:00:00 EST 2009
United States of America
Update Metadata: 2020-10-27 | Issue Number: 1 | Registration Date: 2020-10-27