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> It means that even common people are wading through a minefield every time they file their taxes. According to the IRS, 87% of people take a standard deducti
by mywittyname 2y ago
> It means that even common people are wading through a minefield every time they file their taxes.
According to the IRS, 87% of people take a standard deduction. There's really no minefield there. So long as you don't lie about how many children you have or any sort of tax credits you're applying for, it's dead simple. And worst case, if you mess something up, the IRS already knows the right answer and will send you a letter correcting your mistake or asking for proof.
The complexity is mostly for businesses, with a little bit of it being tax-free savings vectors like IRAs, 509, HSAs, etc. But even those are largely streamlined.
So really, it's an 80/20 thing, 80% of the complexity effects 20% of tax paying entities. And certainly those 20% don't want a "simplified" tax code if that means losing out on the money they save by dealing with the complexity.
- deleted 2y ago[deleted]