3 ms·

Part of the problem is that both parties have ended up making our tax code so convoluted as sops to their own special interest groups. Group A needs a tax brea

Part of the problem is that both parties have ended up making our tax code so convoluted as sops to their own special interest groups. Group A needs a tax break for this! Group B for that! And so if you have a bog-standard boring return, fine, but if your financial situation ends up in certain buckets such as renting out property, getting RSUs, etc., then sometimes it's cheaper to hire an accountant than leave money on the table not understanding your deductions. And then people in less-complicated situations get intimidated and think they need tax-prep software. Or they're lazy like me and use TurboTax so they can click through everything in an hour and be done with it.

mnky9800n 3y ago
The tax code is complicated simply because wealthy people do not want to pay their fair share.
- samus 3y ago
  Depends on your definition of wealthy I guess. There are many tax exemptions that also affect less affluent people. There are simplified filing schemes, but one would leave a lot of money on the table using those.
- rayiner 3y ago
  Have you ever done your taxes? For individuals, it’s easier if you have a high income because many of the deductions and credits phase out and are capped by AGI. Dependent care FSA versus dependent care credits, student loan interest deductions, etc. Most of the questions the software asks you aren’t “Warren buffet” deductions.
  - lotsofpulp 3y ago
    If you have high w-2 cash income. Once you get into equity or business income, it starts getting convoluted again.
    - ghaff 3y ago
      Once you get beyond W2 income, things get complex in a hurry. I don't think I have especially complicated income sources and deductions and I still end up with a half-inch sheaf of forms from my accountant every year. It's not actually a lot of work for me personally. I just need to make sure I've kept track of all the paperwork drifting in or downloaded and I have to write a fairly substantial check to my accountant.
  - yonaguska 3y ago
    Actual wealthy is living off investment income, not a W2. These are the people the complications are built for.
    - rayiner 3y ago
      But those complications don’t affect the average tax filer, which was OP’s theory.
pid-1 3y ago
Most countries have complicated tax codes. That's not a good reason for tax filling to be hard, unless the tax agency itself doesn't know how much a person should be paying.
- karmajunkie 3y ago
  i procrastinated on getting my tax paperwork together this year until an unbelievably late date. so i was kind of surprised to get a call from my tax guy on oct 16 letting me know my return was ready —they had just requested my transcripts from the irs, which had all my income from 2022 listed. so it would seem that a) for at least the nominal taxpayer, it’s entirely possible that the government has your information already; and b) unless i get back into consulting or otherwise complicate my income, my tax guy just set himself up to request those transcripts every year!

mnky9800n 3y ago

The tax code is complicated simply because wealthy people do not want to pay their fair share.

samus 3y ago
Depends on your definition of wealthy I guess. There are many tax exemptions that also affect less affluent people. There are simplified filing schemes, but one would leave a lot of money on the table using those.
rayiner 3y ago
Have you ever done your taxes? For individuals, it’s easier if you have a high income because many of the deductions and credits phase out and are capped by AGI. Dependent care FSA versus dependent care credits, student loan interest deductions, etc. Most of the questions the software asks you aren’t “Warren buffet” deductions.
- lotsofpulp 3y ago
  If you have high w-2 cash income. Once you get into equity or business income, it starts getting convoluted again.
  - ghaff 3y ago
    Once you get beyond W2 income, things get complex in a hurry. I don't think I have especially complicated income sources and deductions and I still end up with a half-inch sheaf of forms from my accountant every year. It's not actually a lot of work for me personally. I just need to make sure I've kept track of all the paperwork drifting in or downloaded and I have to write a fairly substantial check to my accountant.
- yonaguska 3y ago
  Actual wealthy is living off investment income, not a W2. These are the people the complications are built for.
  - rayiner 3y ago
    But those complications don’t affect the average tax filer, which was OP’s theory.

pid-1 3y ago

Most countries have complicated tax codes. That's not a good reason for tax filling to be hard, unless the tax agency itself doesn't know how much a person should be paying.

karmajunkie 3y ago
i procrastinated on getting my tax paperwork together this year until an unbelievably late date. so i was kind of surprised to get a call from my tax guy on oct 16 letting me know my return was ready —they had just requested my transcripts from the irs, which had all my income from 2022 listed. so it would seem that a) for at least the nominal taxpayer, it’s entirely possible that the government has your information already; and b) unless i get back into consulting or otherwise complicate my income, my tax guy just set himself up to request those transcripts every year!