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Killing TurboTax

kunle.app

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Re: Killing TurboTax

#601

Post by refurb »

k_sze wrote: post #577
bob1029 wrote: post #298

"Killing TurboTax" is essentially a meme until we meaningfully simplify the tax code. There is no software development team on earth who could catch up with the full capabilities of TurboTax without some sort of fundamental shift in the business. I really hate to say this as someone who makes a living out of it, but dealing with the current amount of complexity in the tax code with a piece of software that a non-expe…

Yep. As a Hong Konger, it boggles my mind that tax codes in other 1st-world countries are so complex. In Hong Kong, you literally get about 3.5 pages of A4 to fill for your annual income tax returns, the vast majority of which you can leave blank unless you are one of the richer people and do rich people things. And then we have taxes on very few other things, which you simply pay at the time of purchase: - Alcohol -…

Hong Kong's top bracket is 17%. Of course it's simple because the gov't doesn't collect much tax so doesn't need a bunch of exceptions and rules for tax relief.

Re: Killing TurboTax

#602

Post by refurb »

pfranz wrote: post #588
godelski wrote: post #254

Earlier quoted context omitted.

The fact that this isn't in the conversation has always surprised me. Both Regan and Obama supported it. The Republicans did that whole "taxes on a postcard" skit, but we don't even need a postcard. We're talking about TurboTax, well how many of you also log in and all the information is already there? I don't see why we can't replace the 1040 with return free filing, or at least the 1040Ez

Grover Norquist has had Republicans sign "the Pledge" opposing tax increase since 1986. Reportedly, he also wants filing taxes to be painful so you hate the government and he opposes these measures. In 2005, California had a pilot program called ReadyReturn where they mailed you prefilled forms. It was popular. TurboTax lobbied against it and it died.

California Democrats are in the pocket of TurboTax? Really?

Re: Killing TurboTax

#603

Post by masklinn »

spyckie2 wrote: post #579

I really don't get why people want to kill turbotax. I get the following: 1. the tax system in the US is broken 2. It needs to be simpler ... 3. kill turbotax??? For many people, such as myself, turbotax is doing exactly what most people want to kill it for... simplifying US taxes so I don't have to think about it. Am I missing something? Do people just think oh, if turbotax dies, a free open source version of it is…

> Am I missing something?

Turbo tax and friends literally lobby against tax code simplifications, as well as the IRS providing tax prep or return-free filing.

They encourage and contribute to the problem so they can keep selling the solution.

Re: Killing TurboTax

#604

Post by refurb »

specialist wrote: post #139
nicoburns wrote: post #87

Earlier quoted context omitted.

Couldn't the legislators just... not do what the lobbyists want? Are they really all that corrupt?

Legislators are basically doing triage, responding to perceived consensus. Kinda like a product manager. Think attention economy. There's 10,000s of bills filed every year. No one has the resources or bandwidth to handle that. Any given legislator has 1 maybe 2 issues that they care about, for which they will advocate an agenda. The rest, they rely on what they're hearing. Intuit's lobbying effectively drowns out alt…

Source: Have lobbied.

Ahh... that makes sense why this is one of the more reasonable descriptions of how lobbying works. HN seems to think it works by guys in $3,000 suits handing over bags of cash to Congressmen.

Your point about legislators loving to hear from constituents is true - one reason why lobbyists are so effective is because there is often few or no other voices in the room. If voters actually organized around some of these topics they'd be surprised how much power they have.

Re: Killing TurboTax

#605

Post by Double_Cast »

mjevans wrote: post #548
null0pointer wrote: post #527

Earlier quoted context omitted.

I agree, a vastly simplified tax code is needed. Here's my dream for a simpler tax code: The only tax is a Sales tax/VAT/GST. Pros: - Individuals never have to think about tax. It would completely eliminate tax returns. That alone is worth it's weight in gold since tax returns are such a time and money burden. - It would close all the loopholes megacorps/wealthy individuals use to pay less tax. You cannot avoid spend…

A wealth tax. All assets and cash need to be properly valued and then that value taxed. I agree with the sibling comment and also with past discussions where a wealth tax is the only non-regressive (not-keep the poor down) tax code.

One benefit of markets is price-discovery. But if you're not participating in a market, determining price is akin to shaking a magic 8 ball. It assumes a Just Price, which is a heuristic and a fiction.

Also, quality of living is determined by income, not wealth. Fresh retirees are generally wealthier than other age-groups because they've saved for retirement. But that doesn't mean they consume more. Also, consider the citizens of the Netherlands. They enjoy a comfortable existence while servicing an enormous amount of debt. If wealth were the primary determinant of quality of life, you'd think the Netherlands were as as destitute as Somalia.

Re: Killing TurboTax

#606

Post by vidarh »

jjeaff wrote: post #289
vidarh wrote: post #202

Earlier quoted context omitted.

Having dealt with tax authorities in several countries, it's a recurring theme that they have no interest in coming down on you hard if you seem to be trying to do the right thing and make actual efforts at compliance, as they have their hands full putting actual effort into dealing with people actually trying to evade tax. What I always do if in doubt is to attach a letter setting out my assumptions. I've outright h…

There is no way that would work with the IRS. Anything you estimated and can't provide documentation for will automatically be considered void and non-existent by the IRS if that thing reduces your tax bill. If you think you have about $5k in valid deductions, but you can't provide any documentation upon an audit, then that $5k will be reduced to exactly $0 and you will owe all additional taxes plus interest and pena…

I was estimating income, not deductions.

Re: Killing TurboTax

#607

Post by ajmadesc »

Double_Cast wrote: post #605
mjevans wrote: post #548

Earlier quoted context omitted.

A wealth tax. All assets and cash need to be properly valued and then that value taxed. I agree with the sibling comment and also with past discussions where a wealth tax is the only non-regressive (not-keep the poor down) tax code.

One benefit of markets is price-discovery. But if you're not participating in a market, determining price is akin to shaking a magic 8 ball. It assumes a Just Price, which is a heuristic and a fiction. Also, quality of living is determined by income, not wealth. Fresh retirees are generally wealthier than other age-groups because they've saved for retirement. But that doesn't mean they consume more. Also, consider th…

Wealth tax has nothing to do with markets and Nobody whants to tax the level of wealth for an ordinary retire silly. That's a straw man.

The American capital, legal, and tax structure collude to reduce wages, whereas the Dutch system incentivises responsible 'market based solutions'

The only people who want to live with a somali gov are gop

Re: Killing TurboTax

#608

Post by csomar »

null0pointer wrote: post #527
bob1029 wrote: post #298

"Killing TurboTax" is essentially a meme until we meaningfully simplify the tax code. There is no software development team on earth who could catch up with the full capabilities of TurboTax without some sort of fundamental shift in the business. I really hate to say this as someone who makes a living out of it, but dealing with the current amount of complexity in the tax code with a piece of software that a non-expe…

I agree, a vastly simplified tax code is needed. Here's my dream for a simpler tax code: The only tax is a Sales tax/VAT/GST. Pros: - Individuals never have to think about tax. It would completely eliminate tax returns. That alone is worth it's weight in gold since tax returns are such a time and money burden. - It would close all the loopholes megacorps/wealthy individuals use to pay less tax. You cannot avoid spend…

The reason that Taxes are complicated, is that the government wants them to be complicated. You can do without taxes (the government prints money, which is a tax on economic activity); or at a maximum print money + tax on big wealth accumulation which shouldn't affect the average guy.

The tax code is being used as a tool to funnel money through industries and as kickbacks to bureaucrats. A non-communist government can't force the population to do something (invest in this, build this, do that), but they can encourage/discourage it through taxes.

The tax code is not getting simpler any sooner.

Re: Killing TurboTax

#609

Post by ajmadesc »

xur17 wrote: post #571
acjohnson55 wrote: post #563

Earlier quoted context omitted.

I haven't thought this through, but could that actually be a feature?

I'm not sure it would - it seems like this would discourage risk taking. Owning stock in a startup would be a terrible move in this case.

_Most_ capital is not put at "risk".

Re: Killing TurboTax

#610

Post by ajmadesc »

pitaj wrote: post #568
mjevans wrote: post #548

Earlier quoted context omitted.

A wealth tax. All assets and cash need to be properly valued and then that value taxed. I agree with the sibling comment and also with past discussions where a wealth tax is the only non-regressive (not-keep the poor down) tax code.

Wealth taxes are extremely inefficient and ineffective at actually generating revenue.

It's different when you

1. own the largest market 2. Own the world reserve currency 3. Have a means of charging exit taxes

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