American Accounting Association 2006 Midwest Region Meeting March 30 – April 1 Chicago, Illinois

Friday, March 31, 9:40 a.m. - 10:20 a.m.
Forum Papers

Title: Analysis of the Treasury Report on Return-Free Tax Systems

Larry R. Garrison University of Missouri-Kansas City

ABSTRACT: The U.S. Department of Treasury issued a report late in 2003 reviewing return-free tax systems in other countries and estimating the number of taxpayers who would be able to qualify for return-free filing status in the United States. The report also addressed the possible changes in compliance burdens and administrative costs of a return-free tax system in the United States.

The report determined that after reviewing the return-free tax systems in other countries, the United States tax system would need to be significantly simplified to conform to other countries return-free tax systems. The report notes however that such simplification may not meet the stated goals of the current U.S. tax system. The report also states that return-free tax systems tend to shift compliance costs from the taxpayer to the employer, and state and national governments. This article will summarize the major findings of the Treasury report.

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