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Does Tax Complexity Discourage Entrepreneurship? Daphne M. Armstrong University of North Carolina Daphne_Armstrong@kenanflagler.unc.edu Stephen Glaser University of North Carolina Stephen_glaeser@kenanflagler.unc.eduJanuary

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What is does tax complexity discourage?

Tax complexity discourages compliance with tax laws and can make it difficult for taxpayers to understand and fulfill their obligations.

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All individuals and entities that meet certain income thresholds or have specific types of income are required to file taxes, regardless of tax complexity.

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The purpose of tax complexity is to ensure that all taxpayers accurately report their income and pay the correct amount of tax owed.

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Taxpayers must report their income, deductions, credits, and any tax payments made throughout the year.

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