2131 It's no wonder Americans don't save money for retirement

The government makes it very difficult. My daughter called me yesterday about her plans for a Roth IRA for 2005 and 2006. She's read all the instructions three times and talked to her accountant, and still won't know until she has a professional do her taxes, whether she can do the entire $4,000. I picked up a tax preparation book at the library and leafed through to the IRA section. It was impossible to understand.

In 1995 the total pages of federal tax rules were 40,500; in 2004, 60,044.

In 2000 the number of IRS tax forms were 475; in 2004 they were 529.

In 1994 there were 16 loopholes for education and training; in 2004 that had risen to 28.

In 1995, 50% of taxpayers used paid tax preparers; in 2003, 62%.

In 1995 Americans spent 5.3 billion hours filling out tax forms; in 2004, 6.5 billion.

In 1995 there were 84 pages in the 1040 instruction book; in 2003 there were 131.

To complete the 1040, A,B, and D schedules in 1995, it required 21.2 hours; in 2003 it took 28.5. [figures from CATO Handbook on Policy, p. 120]

Roth IRA
Federal tax reform
Savings accounts