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IRS launches paperless processing initiative

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Re: IRS launches paperless processing initiative

#21

Post by efitz »

halestock wrote: post #18
efitz wrote: post #17

How about this: let’s go to a single flat rate for everyone and everything (say 20%) and eliminate all deductions except for a standard deduction (say whatever is the poverty line, eg $25000 or so). This would be for corporations and individuals. Now your taxes can be filed on a postcard. And the IRS can preprint it and send it to you, with an online code or something to click “ok” on a web site and be done. The gove…

Sounds great, except a flat tax rate is extremely regressive so you either tank the amount of tax revenue the government collects, or you punish low income earners far more than wealthy individuals.

The regressive aspect of it is offset by the large standard deduction.

Re: IRS launches paperless processing initiative

#22

Post by delecti »

efitz wrote: post #17

How about this: let’s go to a single flat rate for everyone and everything (say 20%) and eliminate all deductions except for a standard deduction (say whatever is the poverty line, eg $25000 or so). This would be for corporations and individuals. Now your taxes can be filed on a postcard. And the IRS can preprint it and send it to you, with an online code or something to click “ok” on a web site and be done. The gove…

What about business deductions, or are you okay with low-margin businesses being forced to evaporate overnight? And what about all the charities that suddenly get vastly less donations because they're no longer deductible? Also as the other comment notes, that's either a drastic cut to revenue, or incredibly regressive on lower-income earners.

Taxes are more complicated than they need to be, but they're also complicated because the world is complicated.

Re: IRS launches paperless processing initiative

#23

Post by PopAlongKid »

callalex wrote: post #14
PopAlongKid wrote: post #8

Earlier quoted context omitted.

The article is primarily about processing documents other than actual income tax returns. Does the U.K. have a completely digital (paperless) way of communicating with taxpayers and resolving issues after the tax return is filed? The U.S. has had "online tax returns" (e-file) since the 1990s. Paid tax preparers are mandated to efile, it is only the minority of DIY taxpayers who insist on paper filing their income tax…

>it is only the minority of DIY taxpayers who insist on paper filing their income tax returns This is a gross misrepresentation of the situation. Being forced to chop down and bleach trees if you don’t want to pay a bribe to a rent seeking company that lobbies directly against your interests is not “insisting on paper filing” at all.

So you are claiming that not wanting to do one thing means you are forced to do some other thing? It is a choice, nothing is "forced".

More importantly, you don't have to "pay a bribe to a rent-seeking company" (talk about gross misrepresentation!), the IRS offers free online filing to everyone (and I'm not talking about the "Free file alliance" with tax software vendors, but a direct service from the IRS).

https://www.irs.gov/e-file-providers/free-file-fillable-form...

Re: IRS launches paperless processing initiative

#25

Post by callalex »

PopAlongKid wrote: post #23
callalex wrote: post #14

Earlier quoted context omitted.

>it is only the minority of DIY taxpayers who insist on paper filing their income tax returns This is a gross misrepresentation of the situation. Being forced to chop down and bleach trees if you don’t want to pay a bribe to a rent seeking company that lobbies directly against your interests is not “insisting on paper filing” at all.

So you are claiming that not wanting to do one thing means you are forced to do some other thing? It is a choice, nothing is "forced". More importantly, you don't have to "pay a bribe to a rent-seeking company" (talk about gross misrepresentation!), the IRS offers free online filing to everyone (and I'm not talking about the "Free file alliance" with tax software vendors, but a direct service from the IRS). https://w…

The whole point of this discussion introduced by the article linked at the top of the page is that electronic communication is only available to the general public for initial filing.

Re: IRS launches paperless processing initiative

#27

Post by orangepurple »

halestock wrote: post #18
efitz wrote: post #17

How about this: let’s go to a single flat rate for everyone and everything (say 20%) and eliminate all deductions except for a standard deduction (say whatever is the poverty line, eg $25000 or so). This would be for corporations and individuals. Now your taxes can be filed on a postcard. And the IRS can preprint it and send it to you, with an online code or something to click “ok” on a web site and be done. The gove…

Sounds great, except a flat tax rate is extremely regressive so you either tank the amount of tax revenue the government collects, or you punish low income earners far more than wealthy individuals.

Wealthy Democrats living abroad do not file US tax returns and the IRS never goes after them because they are friends with the leadership back in the country.

Re: IRS launches paperless processing initiative

#28

Post by halestock »

efitz wrote: post #21
halestock wrote: post #18

Earlier quoted context omitted.

Sounds great, except a flat tax rate is extremely regressive so you either tank the amount of tax revenue the government collects, or you punish low income earners far more than wealthy individuals.

The regressive aspect of it is offset by the large standard deduction.

That still won't solve the issue. The reason for progressive taxation is that there simply isn't a tax rate that allows you to both sufficiently fund the government and doesn't punish low income earners. The gulf between what the lowest and highest earners make is simply so vast that you can't do it without progressive taxation.

Re: IRS launches paperless processing initiative

#29

Post by halestock »

orangepurple wrote: post #27
halestock wrote: post #18

Earlier quoted context omitted.

Sounds great, except a flat tax rate is extremely regressive so you either tank the amount of tax revenue the government collects, or you punish low income earners far more than wealthy individuals.

Wealthy Democrats living abroad do not file US tax returns and the IRS never goes after them because they are friends with the leadership back in the country.

[citation needed]

Re: IRS launches paperless processing initiative

#30

Post by orangepurple »

halestock wrote: post #29
orangepurple wrote: post #27

Earlier quoted context omitted.

Wealthy Democrats living abroad do not file US tax returns and the IRS never goes after them because they are friends with the leadership back in the country.

[citation needed]

Hearsay from my friend who lives abroad and who was attending a Democrats abroad function and they kicked him out of the meeting after he suggested that they pass a rule that anybody who could be eligible to be elected to the board of directors should be able to pass a basic tax audit. There was support in the audience but the organizers immediately banned him.

There are stories of the IRS being used as a political weapon floating around online as well.

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