Abstract

We investigate claims that the complexity of the tax system discourages entrepreneurship. We use the implementation of tax filing assistance centers, which help entrepreneurs file their taxes, as sources of plausibly exogenous variation in the tax complexity effectively facing potential entrepreneurs. We find that tax filing assistance offices significantly increase local entrepreneur entry and overall business income, suggesting that tax filing complexity significantly discourages entrepreneurship and small business creation.

Note: Research papers posted on SSRN, including any findings, may differ from the final version chosen for publication in academic journals.  

---

• Keyword(s):
• accounting 109
• strategy and entrepreneurship 180
• tax 30

View Working Paper