5 ms·

US could have simple taxes. Basically a standard deduction for everyone. But what that means is getting rid of a lot of tax credits including mortgage interest,

by bko 5y ago

US could have simple taxes. Basically a standard deduction for everyone. But what that means is getting rid of a lot of tax credits including mortgage interest, charitable donations, education credits, child care, medical care, energy and disaster, just to name a few. So instantly any proposed changes would get resistance from housing, charity, education, parent groups, medical industry, ESG among others. Think about how many times politicians say "we should encourage [good thing] and discourage [bad thing]". What do you think they're talking about? Changing the tax code. And if you think the US government knows if you installed solar panels on your roof this year or something, then you're sorely mistaken

vkou 5y ago
You could still have all of those deductions, but let people request that the IRS do their taxes for them, which would cover the 90% of cases where your standard deduction is optimal for you. They have my bank accounts, they have my brokerage accounts, they have my W-2s. There's no reason I can't just ask them to do my taxes for me.
alistairSH 5y ago
The IRS might not be able to know about every credit/deduction, but they could host an online form, pre-populated with what they do know (most income sources for most people, family size/child deductions, etc) and then give a simple list of credit/deduction checkboxes/inputs. Even that would be worlds better than paying for TaxCut or a CPA every year, or doing it all manually on paper.
- bko 5y ago
  So basically IRS recreates turbo tax?
  - alistairSH 5y ago
    Essentially, yes. But with income and other knowable data pre-populated and none of the dark patterns and at no charge.
- 6510 5y ago
  I've had this conversation with (dutch) government employees a good number of times long ago. I use to wait with filling out a form until the absolute latest moment. I knew they [often] couldn't process the forms until they had all of them. I would get reminders and sometimes a phone call. I explain my sabotage: If you already have access to these numbers. Why are you asking me for it? If it is up to me I will exercise my right to make a mess of it. Same for paying taxes: You present it like I have a choice I can pay it or I can not pay it? But if I don't pay it you will give me a 5 euro fine and then a 50 euro fine and then the 800 euro fine and then you take the money out of my account or seize my income. So they choices are: 1) PAY or 2) PAY. Just take it out of my account? Why would you invite millions of people to make a mess from your administration? I give the employee an example. I can request a form, it is send to my house, at the top of the form it asks for my name and address. As if I have nothing better to do? Then I return the form and someone has to check my name and address???? As if they too have nothing better to do. Multiply the effort by many millions and by dozens of forms and it becomes a horrific waste of of time. Why are we doing this? Now it is just a web page that shows the data they have on me. I click accept, even if it is slightly inaccurate and I'm done. Wonderful!

by bko 5y ago

vkou 5y ago

You could still have all of those deductions, but let people request that the IRS do their taxes for them, which would cover the 90% of cases where your standard deduction is optimal for you. They have my bank accounts, they have my brokerage accounts, they have my W-2s. There's no reason I can't just ask them to do my taxes for me.

alistairSH 5y ago

The IRS might not be able to know about every credit/deduction, but they could host an online form, pre-populated with what they do know (most income sources for most people, family size/child deductions, etc) and then give a simple list of credit/deduction checkboxes/inputs. Even that would be worlds better than paying for TaxCut or a CPA every year, or doing it all manually on paper.

bko 5y ago
So basically IRS recreates turbo tax?
- alistairSH 5y ago
  Essentially, yes. But with income and other knowable data pre-populated and none of the dark patterns and at no charge.
6510 5y ago
I've had this conversation with (dutch) government employees a good number of times long ago. I use to wait with filling out a form until the absolute latest moment. I knew they [often] couldn't process the forms until they had all of them. I would get reminders and sometimes a phone call. I explain my sabotage: If you already have access to these numbers. Why are you asking me for it? If it is up to me I will exercise my right to make a mess of it. Same for paying taxes: You present it like I have a choice I can pay it or I can not pay it? But if I don't pay it you will give me a 5 euro fine and then a 50 euro fine and then the 800 euro fine and then you take the money out of my account or seize my income. So they choices are: 1) PAY or 2) PAY. Just take it out of my account? Why would you invite millions of people to make a mess from your administration? I give the employee an example. I can request a form, it is send to my house, at the top of the form it asks for my name and address. As if I have nothing better to do? Then I return the form and someone has to check my name and address???? As if they too have nothing better to do. Multiply the effort by many millions and by dozens of forms and it becomes a horrific waste of of time. Why are we doing this? Now it is just a web page that shows the data they have on me. I click accept, even if it is slightly inaccurate and I'm done. Wonderful!