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This sounds awesome! Now here's hoping they might do the same for the tax system someday. If only Intuit could stop lobbying to keep it a horrible train wreck.

by fooqux 5y ago

toomuchtodo 5y ago
Call your representatives. Share your concerns. In volume, it moves the needle.
- fooqux 5y ago
  You're right. I haven't done that in awhile. Thank you for the reminder.
- jessaustin 5y ago
  Has the tax system ever become less of a trainwreck? I'm not an expert, but the trainwreckedness seems to monotonically increase. On multiple occasions in the past, significant numbers of voters have contacted their representatives to discuss just this topic. Why didn't voicing their concerns work on those occasions, and why will it be different this time around?
  - rrrrrrrrrrrryan 5y ago
    Yeah, Reagan drastically simplified the tax code in 1986 by eliminating a ton of deductions and expanding the standard deduction. [1] (It also lowered the top tax rate from 50% to 28%, and raised the bottom tax rate from 11% to 15%, so it wasn't a complete win). For all its faults, the Trump admin also nearly doubled [2] the standard deduction in 2017, which hugely simplifies taxes for the people who choose to use it. From Wikipedia: > The standard deduction nearly doubles, from $12,700 to $24,000 for married couples. For single filers, the standard deduction will increase from $6,350 to $12,000. About 70% of families choose the standard deduction rather than itemized deductions; this could rise to over 84% if doubled. Much of the information that TurboTax asks for is just help you figure out whether or not to choose the standard deduction. (At least that's what Intuit claims, but if you don't opt-out of the data sharing agreement, they get to have an absolute field day with all the financial data you've given them). But if you choose the standard deduction, the logic is usually quite simple, and you don't need massively complex software to help you. [1] https://www.britannica.com/topic/Tax-Reform-Act https://www.britannica.com/topic/Tax-Reform-Act [2] https://www.investopedia.com/taxes/trumps-tax-reform-plan-explained/#mntl-sc-block_1-0-52 https://www.investopedia.com/taxes/trumps-tax-reform-plan-ex...
    - wolverine876 5y ago
      > Yeah, Reagan drastically simplified the tax code in 1986 by eliminating a ton of deductions and expanding the standard deduction. [1] That was how Reagan advertised it. A professional I know called Reagan's tax law 'The Tax Attorneys and Accountants Relief Act of 1986' because it created so many complexities and so much work for them.
    - jessaustin 5y ago
      But if you choose the standard deduction, the logic is usually quite simple, and you don't need massively complex software to help you. This is true. Since the turbotax web form seems to help many taxpayers (the other possibility is that it's all SEO?), it might be nice if IRS ran an analogous web form in addition to what they do now.
    - bdowling 5y ago
      > (It also lowered the top tax rate from 50% to 28%, and raised the bottom tax rate from 11% to 15%, so it wasn't a complete win). The Tax Reform Act of 1986 also eliminated a ton of shenanigans that sophisticated taxpayers could play with income and expenses. For example, prior to the reform you could write off any interest expense against your income. So, you could borrow money to invest in long-term investments and then deduct the interest expense against your current employment income. There were investment products that were essentially just buying a tax deduction. The reforms shut all of that down.

This sounds awesome! Now here's hoping they might do the same for the tax system someday. If only Intuit could stop lobbying to keep it a horrible train wreck.

by fooqux 5y ago

This sounds awesome! Now here's hoping they might do the same for the tax system someday. If only Intuit could stop lobbying to keep it a horrible train wreck.

toomuchtodo 5y ago

Call your representatives. Share your concerns. In volume, it moves the needle.

fooqux 5y ago
You're right. I haven't done that in awhile. Thank you for the reminder.
jessaustin 5y ago
Has the tax system ever become less of a trainwreck? I'm not an expert, but the trainwreckedness seems to monotonically increase. On multiple occasions in the past, significant numbers of voters have contacted their representatives to discuss just this topic. Why didn't voicing their concerns work on those occasions, and why will it be different this time around?
- rrrrrrrrrrrryan 5y ago
  Yeah, Reagan drastically simplified the tax code in 1986 by eliminating a ton of deductions and expanding the standard deduction. [1] (It also lowered the top tax rate from 50% to 28%, and raised the bottom tax rate from 11% to 15%, so it wasn't a complete win). For all its faults, the Trump admin also nearly doubled [2] the standard deduction in 2017, which hugely simplifies taxes for the people who choose to use it. From Wikipedia: > The standard deduction nearly doubles, from $12,700 to $24,000 for married couples. For single filers, the standard deduction will increase from $6,350 to $12,000. About 70% of families choose the standard deduction rather than itemized deductions; this could rise to over 84% if doubled. Much of the information that TurboTax asks for is just help you figure out whether or not to choose the standard deduction. (At least that's what Intuit claims, but if you don't opt-out of the data sharing agreement, they get to have an absolute field day with all the financial data you've given them). But if you choose the standard deduction, the logic is usually quite simple, and you don't need massively complex software to help you. [1] https://www.britannica.com/topic/Tax-Reform-Act https://www.britannica.com/topic/Tax-Reform-Act [2] https://www.investopedia.com/taxes/trumps-tax-reform-plan-explained/#mntl-sc-block_1-0-52 https://www.investopedia.com/taxes/trumps-tax-reform-plan-ex...
  - wolverine876 5y ago
    > Yeah, Reagan drastically simplified the tax code in 1986 by eliminating a ton of deductions and expanding the standard deduction. [1] That was how Reagan advertised it. A professional I know called Reagan's tax law 'The Tax Attorneys and Accountants Relief Act of 1986' because it created so many complexities and so much work for them.
  - jessaustin 5y ago
    But if you choose the standard deduction, the logic is usually quite simple, and you don't need massively complex software to help you. This is true. Since the turbotax web form seems to help many taxpayers (the other possibility is that it's all SEO?), it might be nice if IRS ran an analogous web form in addition to what they do now.
  - bdowling 5y ago
    > (It also lowered the top tax rate from 50% to 28%, and raised the bottom tax rate from 11% to 15%, so it wasn't a complete win). The Tax Reform Act of 1986 also eliminated a ton of shenanigans that sophisticated taxpayers could play with income and expenses. For example, prior to the reform you could write off any interest expense against your income. So, you could borrow money to invest in long-term investments and then deduct the interest expense against your current employment income. There were investment products that were essentially just buying a tax deduction. The reforms shut all of that down.