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IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

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241–250 of 489 posts

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#241

Earlier quoted context omitted.

FWIW, The GOP control of the senate is clearly not due to gerrymandering, or at least not any gerrymandering that happened in the past 100 years. I think gerrymandering is an issue, but it's only a fraction of the reason why representation is not particularly proportional.

> or at least not any gerrymandering that happened in the past 100 years. This is the /very/ important distinction. Our entire country was gerrymandered when they gave every state 2 votes in the senate. It's truly crazy how few Americans can sway the makeup of the senate/house/EC. Edit: removed "(and 3 base in the house)" because that's not correct, I was mixing it up with the EC in my head.

[deleted]

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#242
post #172

It's so insane to me that Grover Norquist somehow lobbied against free tax filing provided by the IRS. It escapes all logic that he didn't pay attention to what other countries do. It escapes all logic that he didn't think for a moment about what the cost would be to citizens in (more or less direct payments to Intuit) and that's not considering the incalculable cost of just gathering up all this documentation and pu…

It is not insane, just not obvious what Grover’s aim is. He is anti-tax for a large number of reasons. By making paying tax painful for the majority of people he is trying to increase the percentage of the population that hate the IRS and taxes. All very sane if your aim is to lower taxes.

Only if you don't care who you hurt on the way to your goal. We may have different definitions of sanity.

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#243

Earlier quoted context omitted.

The majority (~70%) of tax-payers don't have $12k/$24k (single/married) worth of things to deduct. Yet, ~90% of tax-payers use either a CPA (~50%) or tax software (30%) to file. Between overly complex rules, heavy advertising, and lobbying, the tax prep companies have us all convinced we'll go jail if we don't pay $40-$400+ for prep services.

I'm a CPA, and I pay another CPA specialized in taxes to do mine. Our tax code is far too complex. Basically no one can just sit down and do their taxes and be sure that they are paying the minimum amount they owe.

On the contrary. I would wager that the vast majority of Americans can do a very simple tax computation (especially after the Trump administrations' increase in the standard deduction, whatever you think about the politics of it) and get their taxes correct.

Yes, there are several million people with special cases. If there were 3 million of them, that's not even 1% of the population. A significant group, but hardly demonstrative of "basically no-one".

Income - [ 3 or 4 basic deductible items ] - [ N * exemptions ] - standard deduction => go to tax table => tax. Done.

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#244

Earlier quoted context omitted.

The thing people misunderstand with the government not being able to figure it out is because there's a huge variety of complexity that is truly individual based. Did you make a contribution to a tax deductible IRA? Did you make a retroactive payment to that account in the following tax calendar year? There's a ton of variables going on here, where the government doesn't have this all-seeing system where everything g…

Flat taxes would not help at all, because the government still needs to know all your data. After that it is just computations which computers are pretty good at.

This is the essence of the idiotic premise of the current administration that they simplified taxes enough to fit on a post card... The number of brackets isn't the source of tax complexity, it's all of the other shit. That's why that 'postcard' can be accompanied with dozens of supplemental forms. Predictably they killed the 'postcard' after one year:

https://www.businessinsider.com/the-republican-tax-reform-po...

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#246

In the US, we've had decades of (largely GOP) messaging that the government can't do anything properly. A substantial portion of the population believes it. As noted in a sibling comment, the IRS could pre-fill forms that would be correct for the vast majority of tax payers (who take the standard deduction/don't itemize, have a single job, and no other edge cases). These people should not be paying TurboTax either wa…

> messaging that the government can't do anything properly I would love to hear about things the government has done exceptionally better than private companies. Please go on.

How about fire fighting, defense, and the Internet?

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#247
post #82

Earlier quoted context omitted.

It's pretty disgusting. Summed up in one of my favorite tweets, which went something like > Gov: you owe us money. It's called taxes > Ctzn: oh ok, how much do I owe you? > Gov: you have to figure it out > Ctzn: oh well, then I owe you 0 > Gov: no, no, we know how much you owe, you have to figure it out, and by the way if you get it wrong you go to jail

The thing people misunderstand with the government not being able to figure it out is because there's a huge variety of complexity that is truly individual based. Did you make a contribution to a tax deductible IRA? Did you make a retroactive payment to that account in the following tax calendar year? There's a ton of variables going on here, where the government doesn't have this all-seeing system where everything g…

We don't need a flat tax rate to simplify the system, though. A progressive tax rate is just fine, as long as it is consistent across all types of income with no, or few, deductions. Inheritance is income. Capital gains is income. We may still need some offsetting - it seems unreasonable to tax capital gains when moving your primary residence, for example (which the US does now, with some unnecessarily complicated value and time based offsets).

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#248
post #38

This USA tax thing has always baffled me... it is the exact definition of why we pay taxes: for the government to provide services that are common to the country´s citizens. There´s nothing more common than tax collection: rich, middle class or poor. Why wouldn't citizens demand a public tax filing process? Even in Mexico we have an automagical tax filing process that makes: a) The great majority of the population wh…

a) The great majority of the population who perceives a salary not needing to file taxes.

In the United States, and many other nations, the vast majority of taxes aren't collected from payroll. If that was the case, things would be easy. But there are hundreds of other ways that taxes are collected, and they vary from person to person.

More importantly, taxes aren't exclusively about revenue generation. They're used to encourage people to do or not do things: Save money, invest money, buy houses, have babies, buy cars, add solar panels, and thousands of other things.

There are plenty of people who shout "flat tax!" whenever this topic comes up. But they're mostly people who have only led simple lives where the IRS only touches them on their paycheck, or who don't understand the full range of how taxes are used.

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#249
post #189

Earlier quoted context omitted.

I am definitely not a Grover Norquist fan, but I do taxes for a living and a lot of people are VERY surprised at the amount that is withheld from their paychecks, but they never notice how much it is unless something happens and they are required to write a check. A couple illustrations: It's very common for people to owe tax at a lower rate than they did the year before, but be upset because they have to write a che…

I think this is where things get unfair. As a system we are more comfortable taking advantage of these people’s ignorance than teaching them. As your said even savvy people don’t get this concept because it means understanding the whole system not just when they get their checks.

I agree completely! I think it’s impossible to have a productive discussion about taxation on the national level when no one even knows how much they’re paying and where the money is going. Not that that information isn’t fairly easily attainable, but in my experience, very few people attain it and even fewer fully understand it.

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#250

Earlier quoted context omitted.

It is not insane, just not obvious what Grover’s aim is. He is anti-tax for a large number of reasons. By making paying tax painful for the majority of people he is trying to increase the percentage of the population that hate the IRS and taxes. All very sane if your aim is to lower taxes.

Only if you don't care who you hurt on the way to your goal. We may have different definitions of sanity.

Now we are getting to the question if his aim is ethical or not. I think his obsession with reducing taxation at all costs is misguided and often counterproductive, but it is not insane.
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