Earlier quoted context omitted.
it's a matter of perspective . making taxes more invisible to some people, myself included, makes them easier to raise. so, the argument would be to first make taxes more painful. the best would be to remove auto withholding. if the average $50k a year family had to write a check for $3k to the government every 3 mouths they'd likely push much harder for lower taxes. less taxes means less money for government which w…
not sure what area they're in where a $50k/year family pays $12k in taxes. NY? CA?
Filing Taxes in Japan Is a Breeze. Why Not in the US?
251–260 of 279 posts
Re: Filing Taxes in Japan Is a Breeze. Why Not in the US?
#252All other developed countries have no problem doing ________. Why can't the US do _________? Lobbying. Works for simple tax returns, healthcare, labor laws, unionizing, etc.
The only justification I've ever heard for why lobbyism should be legal is "lobbyists act as 'lawyers' to help the people be heard in the legislative sphere". If that were true, "if you cannot afford a lobbyist, one will be provided to you" would be a thing (and no, I'm not talking about crowd-funded 'patches' like the public funded NPOs/watchdogs protecting our rights). As far as I'm concerned it's functionally equi…
More robust restrictions on the flow of money from lobbyists to campaigns and superPACs could be an effective deterrent on the worst influences of lobbyists, though.
Re: Filing Taxes in Japan Is a Breeze. Why Not in the US?
#253I love paying my taxes, and I kinda like the baroque U.S. process. Every April, I spend a couple of weeks being salty that government is penalizing me for being married, penalizing me for not taking out a giant loan to buy a McMansion in the suburbs, taking my money and using it to bomb Syria instead of helping working class families, etc. If my taxes just got auto-paid, I don't think I would even think of these thin…
Re: Filing Taxes in Japan Is a Breeze. Why Not in the US?
#254Perhaps it would be easier to have the government collect all of our income, subtract the taxes, and pay us the difference once a year. That would be even simpler.
How would I take advantage of pre-tax money, like contributing to retirement accounts, HSA, ...?
If you were to pay £80 into a personal pension (similar to an IRA), about a month later an additional £20 would be added. That's tax relief at the 20% basic rate. (Higher rate payers currently need to file to claim additional relief, but there's no reason that couldn't be automated too.)
If you had a company pension instead (similar to a 401(k)), you can pay in through salary sacrifice, where the salary your tax is calculated on is reduced and the difference paid directly into the pension scheme.
Whichever route is taken, the end result is the same: a £100 contribution cost you £100 in pre-tax money.
Re: Filing Taxes in Japan Is a Breeze. Why Not in the US?
#255Re: Filing Taxes in Japan Is a Breeze. Why Not in the US?
#256Earlier quoted context omitted.
BTW, the refund is a super-cool thing about the Australian system that may not be super-widespread. The Icelandic system is a very similar pay-as-you-go tax system, so tax is predicted and withheld from your wages over the course of the year. But Iceland errs on the side of under-withholding, if they don't know what your income is going to be. As a result, come tax time, most people get a letter saying "you owe us 60…
I view over-withholding as an interest free loan to the government. No thanks. I'd rather underpay by 1% than overpay. For me 1% is over $100/mo. I'd rather earn interest, dividends, whatever on that and then pay the balance.
Re: Filing Taxes in Japan Is a Breeze. Why Not in the US?
#257Re: Filing Taxes in Japan Is a Breeze. Why Not in the US?
#258Earlier quoted context omitted.
I pay very close to that for our US taxes. We have to file 5 federal returns and one state return: an MFJ 1040 with supporting schedules (A, C, and D primarily), 2 kiddie returns, 2 gift tax returns, and a state return. Throughout the year, we file quarterly estimated taxes and 4868s. Our total filing packet runs to nearly 100 pages and our annual bill is between $1800 and $2500, depending on the exact complexity, wh…
Do you run a multinational company? Or how did you afford throwing away $29K for a simple arithmetic error?
Here's how it happens to lots of people.
1. Vest RSUs worth $25k-500k, depending on how senior you are and what BigCo you work for
2. Employer sells 40% of your shares instantly upon vesting, for taxes
3. Employer remits that 40% to the government
4. You sell all your shares, because you realize concentrating your risk of investment loss with the risk of unemployment is a bad idea. Basis should be approximately 60% of that year's vesting
5. Employer correctly reports the full pre-tax vested RSU value as income on your W2
6. Broker, for incredibly Byzantine and unfortunate legal reasons, reports basis of vested-then-sold stock as zero
If you miss step 6. when filing your taxes and just naively enter the numbers your broker gives you in your tax forms, you will be double taxed, capital gains on the full value of your sale, instead of ~$0 gain for your vested-then-sold stock. Your employer already covered that income on your W2.
So, sokoloff may have just inappropriately paid capital gains on a $300k vest. Sizable, but fairly normal for a high performing senior engineer or manager at a BigCo.
Alternatively, the same logic applies (and it's even easier to screw up) if you held on to your shares from multiple years of vesting, and sold them all at once, so the original grants may have been smaller. If they appreciated, you owe tax on the adjusted basis, not the zero basis reported by the broker.
Side note: you need to check this particular failure even if you take your return to a place like H&R Block. H&R Block specifically has repeatedly screwed this up for many different coworkers of mine. And then they didn't help with the necessary amended return. Stear clear of H&R Block.
Re: Filing Taxes in Japan Is a Breeze. Why Not in the US?
#259Earlier quoted context omitted.
not sure what area they're in where a $50k/year family pays $12k in taxes. NY? CA?
Nowhere. $50k a year family probably only pays $5k a year all in including ss.
Re: Filing Taxes in Japan Is a Breeze. Why Not in the US?
#260Earlier quoted context omitted.
> That's how it is in most countries because they're all different entities collecting. Exactly. I pay city, state, and federal income tax in the US. My city is about 1.5 times the population of Finland, and that's only one of the three different forms of income tax I have to pay. At least that goes through the state, so it's only two departments, but that's again separate from the federal IRS. And that's just income…
In Poland municipal, state and federal income taxes are paid as a single entry on the tax form. The government then transfers the money to the appropriate lower level of authorities. So I wouldn't say that most countries differentiate like in the states. Maybe it is a Europe - USA difference?
Definitely a peculiarity of the US system being less cohesive than some other countries - and also dealing with far more people and jurisdictions.