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Isn't one of the legitimate barriers to an easy tax system that we have such a patchwork of non-communicating state governments and tax policies that for many p
by supernova87a 4y ago
Isn't one of the legitimate barriers to an easy tax system that we have such a patchwork of non-communicating state governments and tax policies that for many people a pre-filled form would be badly missing info, or worse, missing out on credits people are due? Although, maybe no worse than it is now. It feels like the states treasuries/tax collectors barely talk to the IRS (oversimplifying of course).
That and there are so many non-automatically-reportable exceptions (income doesn't have to be logged and calculated consistently and sent to the IRS), loopholes, deductions, etc. in tax law. Although, again, most of the population could be satisfied / correctly done with a baseline product. At least brokerage capital gains started being reported automatically (and mandatory) although I notice there are tons of errors than can crop up, as well as exceptions that break the system.
Not saying I like the situation Intuit keeps us in, and we should automate as much as possible, but aren't there deeper reasons fueling their existence? We should fix those problems as well -- but I suppose that is asking Congress to pass or restrain themselves from mucking up the system every time they want to inject some favored loophole.
- TulliusCicero 4y agoThe answer then is to at least pre-fill the information the government does know, because it was reported by banks/your employer/whoever else. Why do I have to enter in how much interest I made or stock sales or whatever when the relevant financial institution already reported this to the feds? The computer is less likely to screw it up than I am.