3 ms·

That is a huge part of it, but I've heard one of the other major barriers are people who are just plain anti-tax since they think anything more centralized woul

That is a huge part of it, but I've heard one of the other major barriers are people who are just plain anti-tax since they think anything more centralized would just give the government an excuse to sneak in new taxes.

starcraft2wol 3y ago
I am somewhat sympathetic to the argument you are describing. Imagine if income tax was not automatically deducted from your paycheck, but required you to save and physically send money to the IRS (like most 1099 contractors have to do). I think the overall feeling about tax for the bottom 60% of earners would be a little different, whereas now they see getting back some forced savings as a little reward. The government is highly incentivized to automate and disguise that activity further.
- landemva 3y ago
  There was no employer withholding originally. People wrote a check each year, which made the amounts very visible to each person. Employer withholding keeps it quiet and low-key so few resist the takings. "Current Tax Payment Act of 1943" https://lawcat.berkeley.edu/record/191355 https://lawcat.berkeley.edu/record/191355
LatteLazy 3y ago
That would be a really regressive change in terms of who pays and how much they pay. There are also very simple tax systems that are not regressive, like the UK or most of Europe's systems. Just eliminate most deductions and the ones you keep, decouple from taxes. Then 90% of employees can just have their tax deducted at source and not file anything. Like the UK and European systems. All of the big ones are just automated in most places (here in the UK, investment income is taxed at source, allowances for kids are done automatically based on birth record and the tax authority automatically tell employers rates including for those with multiple jobs)
- landemva 3y ago
  Having lived and worked in Europe, I submitted yearly tax returns to various countries. The German payroll taxes were particularly troublesome to understand. And the countries had high sales taxes with VAT which causes more paperwork and encourages companies to vertically integrate.
  - LatteLazy 3y ago
    Vat is specifically designed NOT to encourage vertical intergration. That's why it is structured the way it is and not paid by companies. I can't comment on the exact details of the German tax system. Here in the UK, I've done 4 tax returns in 22 years of working. All were because I was contracting via a limited company so there was no other way for HMRC to know what was earning. What was the complexity around the German system? I understand they are federal (with state as well as local and federal taxes)...

starcraft2wol 3y ago

I am somewhat sympathetic to the argument you are describing. Imagine if income tax was not automatically deducted from your paycheck, but required you to save and physically send money to the IRS (like most 1099 contractors have to do). I think the overall feeling about tax for the bottom 60% of earners would be a little different, whereas now they see getting back some forced savings as a little reward. The government is highly incentivized to automate and disguise that activity further.

landemva 3y ago
There was no employer withholding originally. People wrote a check each year, which made the amounts very visible to each person. Employer withholding keeps it quiet and low-key so few resist the takings. "Current Tax Payment Act of 1943" https://lawcat.berkeley.edu/record/191355 https://lawcat.berkeley.edu/record/191355

LatteLazy 3y ago

That would be a really regressive change in terms of who pays and how much they pay. There are also very simple tax systems that are not regressive, like the UK or most of Europe's systems. Just eliminate most deductions and the ones you keep, decouple from taxes. Then 90% of employees can just have their tax deducted at source and not file anything. Like the UK and European systems. All of the big ones are just automated in most places (here in the UK, investment income is taxed at source, allowances for kids are done automatically based on birth record and the tax authority automatically tell employers rates including for those with multiple jobs)

landemva 3y ago
Having lived and worked in Europe, I submitted yearly tax returns to various countries. The German payroll taxes were particularly troublesome to understand. And the countries had high sales taxes with VAT which causes more paperwork and encourages companies to vertically integrate.
- LatteLazy 3y ago
  Vat is specifically designed NOT to encourage vertical intergration. That's why it is structured the way it is and not paid by companies. I can't comment on the exact details of the German tax system. Here in the UK, I've done 4 tax returns in 22 years of working. All were because I was contracting via a limited company so there was no other way for HMRC to know what was earning. What was the complexity around the German system? I understand they are federal (with state as well as local and federal taxes)...