Stanford Professor Loses Political Battle To Simplify Tax Filing Process

Post by lsaferite » Wed, Mar 29, 2017, 9:45 PM UTC

ams6110 wrote: post #21

ars wrote: post #11

Earlier quoted context omitted.

Not everyone earns money via income. You have to define what "income" is exactly, then it starts getting complicated...... Example: I route my investment earning via a company, that company can claim expenses such as paying my utility bills and buying my groceries, anything leftover they give me. They work it out so my net income is zero, oops. It's easier actually to tax purchases.

Taxing consumption would rapidly explode into a vast array of categories and rates for different types of consumption, luxury taxes, etc. Food, maybe no tax. But maybe there's some tax if it's ready-to-eat. Or based on sugar content. Automobiles maybe taxed rather heavily, but the first $5000 is exempt so poor people can buy cheap cars, etc. It would become just as complicated as the current code.

Post by lsaferite » Wed, Mar 29, 2017, 9:46 PM UTC

smt88 wrote: post #7

oDot wrote: post #6

I've always wondered, why can't we just pay one tax? Say make income tax 1.5x what it's now and cancel all other taxes. That way it'll be even easier!

Wealthy people are against that. They prefer regressive taxes, like sales tax, that will be shift much more of the burden to the poor. In fact, there's a whole batshit-crazy tax plan called FairTax that proposes changing all taxes to a simple sales tax.

Post by pmorici » Wed, Mar 29, 2017, 9:49 PM UTC

ams6110 wrote: post #23

cestith wrote: post #16

Earlier quoted context omitted.

I disagree on one point. Block and Intuit are also lobbyists against all sorts of code simplification programs. Anything that makes the filing process easier, and having fewer deductions and penalties available makes it easer, they are against.

The business of H&R Block and Intuit came about in response to tax code complexity, they did not create it.

Post by rayiner » Wed, Mar 29, 2017, 9:50 PM UTC

gamblor956 wrote: post #14

Correction: this proposal would not have simplified taxes (i.e., the California tax code). It would merely have simplified the filing of tax returns for the most common case, salaried workers receiving all of their income from a single source. Very big difference. HRBlock and Intuit are heavily vested in maintaining the current tax filing system. They are not, however, meaningful players in the attempts to rewrite th…

Post by sgustard » Wed, Mar 29, 2017, 9:53 PM UTC

gamblor956 wrote: post #14

Correction: this proposal would not have simplified taxes (i.e., the California tax code). It would merely have simplified the filing of tax returns for the most common case, salaried workers receiving all of their income from a single source. Very big difference. HRBlock and Intuit are heavily vested in maintaining the current tax filing system. They are not, however, meaningful players in the attempts to rewrite th…