On the Possibility of a No-Return Tax System
12 Pages Posted: 19 Jul 2014
Date Written: September 1997
Recent events have stimulated interest in reducing or eliminating the annual filing requirement in the income tax. Thirty-six countries already allow "no-return" systems for some of their taxpayers. Moving to a no-return system creates trade-offs in the structures of tax policy as well as the administration of the tax system. We estimate that roughly half of U.S. taxpayers could be placed on a no-return system with relatively minor changes in the structure of the income tax. The benefits and costs of a no-return system hinge on a number of issues that are currently unsolved.
Keywords: tax policy
JEL Classification: H2
Suggested Citation: Suggested Citation