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How do you incentivize people to provide missing info if it will increase their tax bill? The US system is intentionally designed so that you don't know what t
by Mindless2112 4y ago
How do you incentivize people to provide missing info if it will increase their tax bill?
The US system is intentionally designed so that you don't know what the IRS does or does not know. If you leave something off of your taxes that the IRS knows about then maybe they'll audit you and give you a big fine. So the optimal strategy is to report everything and pay the taxes you owe.
In Spain's system, it seems to me that the optimal strategy would be to either go with what the tax agency says or to report more information, depending in which gives you a lower tax bill.
- lovehashbrowns 4y agoThe US system is intentionally designed for companies like TurboTax to make money off of you and to be a political tool. There's a lot you still have to report yourself, like cash payments or sales, crypto currency, dependents, charitable contributions, and so on. It's not like the IRS magically knows everything. You're acting as if people only avoid tax fraud because the IRS has a general idea as to what you owe and they keep it secret from you. People are generally pretty decent. The people intentionally committing tax fraud are gonna try whether the IRS keeps your taxes secret from you or not.
- ClumsyPilot 4y ago'The US system is intentionally designed so that you don't know what the IRS does or does not know." Sounds a lot like 'it's best for the plebs not to know the law is so they don't know what to hide from the police'