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Millions of Americans mess up their taxes, but a new law will help

wakeuptopolitics.com

41–50 of 67 posts

Re: Millions of Americans mess up their taxes, but a new law will help

#41
I guess we're pigeonholing the end of direct file already in less than a year. The article doesn't even mention it.

Having seen their work before, wakeuptopolitics is a sort of fetishist for appearing unbiased or centrist so they won't bother calling out "one side" in order to appear to be enlightened and above the fray at the expense of the truth. While Democrats also get money from turbo tax et al., it was Trump who ended it likely just to spite Joe Biden, in his usual manner.

Re: Millions of Americans mess up their taxes, but a new law will help

#42
post #30

Earlier quoted context omitted.

This is the result of decades of Republican lobbying, legislation and outright sabotage. The philosophy, openly advertised by Grover Norquist's Americans for Tax Reform, goes like this: nobody likes taxes. So if people find the filing process difficult and stressful every year, they will be constantly reminded of this fact. This will in turn make them more open to suggestions and propaganda along the lines of taxes b…

The ease in which you can get away with these tactics ad infinitum is starting to make me a pessimist. It feels like it takes almost an entire population of unified people, that are diligently advocating on behalf of themselves, to compete with a ruling class that has the resources to stay on the offense forever. The ruling class doesn't even have to actively communicate and conspire with one another (although they d…

It would help if Americans educated themselves on the basics of taxes. They would realize quickly how W-2 income employees pay a very high tax rate when you factor in FICA vs high wealth individuals who pay little to no FICA or income taxes. Add in the benefit of compound interest, cheap margin loans, and you have an incredibly unfair system. It's also why many wealthy individuals argue for a "smaller" government & less taxes. They travel private, go to private schools & prefer to avoid anything "public".

All this is with just the very basics, not counting step up basis, trusts or anything slightly complicated.

Re: Millions of Americans mess up their taxes, but a new law will help

#43

Earlier quoted context omitted.

I think that's common in most places. What's different in the US is that the IRS forces you to proactively provide a lot more information about it, though. I have a rental property and need to enter the same information about the same income and expenses on three different forms, breaking it down in different ways. It's tedious and error-prone, and I guess the philosophy is that it's easier to spot fraud if the numbe…

What three forms are you talking about?

4562, 8825, 1065

Re: Millions of Americans mess up their taxes, but a new law will help

#44
post #39

Pedantry: the article claims "Paying taxes is a universal experience", but only 60.4% (2024) of American households pay income tax.

This is a rhetorical sleight of hand; almost everyone pays FICA taxes at some point in their life, and of course there are other taxes than Federal income tax.

Is it? The article is exclusively about federal income tax - spefically the variable part that you have to calculate yourself, not the constant % that's automatically withheld from your paycheck (FICA).

Re: Millions of Americans mess up their taxes, but a new law will help

#45

I like one of the memes online that describe filing tax as you’re taking a test that the government knows the answer to, and if answer the questions wrong, you go to jail.

It's a bizarrely simpleminded and incorrect meme, then.

The government doesn't know the exact answer - if they did we wouldn't have to file at all. Have a kid? Buy a house? Go to college? Make $60k selling illicit drugs on the black market? Get a $200 bank signup bonus? These all affect taxes. One could argue in a dystopian way that technically "the government" as a whole does know these things, but suffice to say, the IRS doesn't, necessarily.

The whole point of filing is that our tax code is ridiculous. We shouldn't get mad at filing, but at our ridiculous tax code. But it'll never be fixed, there's way too much pork stuffed in it from both sides.

Also, nobody files 100% correct taxes. Show me the person, I'll show you the crime(so to speak). You do not go to prison for making mistakes!

Re: Millions of Americans mess up their taxes, but a new law will help

#46
This is insane to me. Not only is the US tax code so complex you need a specialist to help you fill in the tax return but those specialists apparently also have a justified expectation of income and thus can’t be replaced by a freaking web app. Let alone a pre-filled one. I spend 15-20 minutes on my tax return in Estonia and only take that long, because I have some savings in places that do not do the reporting for me. The refund appears on my bank account usually within a few days. We are not the most capable country nor have the best engineers (hello, I’m the former CIO of Estonian Tax and Customs). We don’t have mountains of money either. And yet, here is a solution (and has been for 20+ years by now), that’s two orders of magnitude better, than the solution used by the leading country of the free world. Just why?

Re: Millions of Americans mess up their taxes, but a new law will help

#47
post #34

Earlier quoted context omitted.

The average American shouldn't need top tier accounting to file their taxes.

The average American can file for free, or at least it was possible in the past. They could also learn to file their taxes, as well as simple tax planning, in a very short video.

I'm not joking, in Australia the tax "filing" takes like 2 mins, you literally go, next, next, look at the details, "yep looks correct" put in your claims, and then submit.

You are all done.

Unless you have something wack going on its not even a process. I have had signups which are more complicated then it.

American taxes on the other hand mega suck, and have 9000 pitfalls.

Re: Millions of Americans mess up their taxes, but a new law will help

#48

I like one of the memes online that describe filing tax as you’re taking a test that the government knows the answer to, and if answer the questions wrong, you go to jail.

It's a bizarrely simpleminded and incorrect meme, then. The government doesn't know the exact answer - if they did we wouldn't have to file at all. Have a kid? Buy a house? Go to college? Make $60k selling illicit drugs on the black market? Get a $200 bank signup bonus? These all affect taxes. One could argue in a dystopian way that technically "the government" as a whole does know these things, but suffice to say, t…

> Have a kid? Buy a house? Go to college? Make $60k selling illicit drugs on the black market? Get a $200 bank signup bonus?

Lmao in Australia, other then the drugs, yes the government knows because everything is reported to them.

America is just behind.

Re: Millions of Americans mess up their taxes, but a new law will help

#49
post #48

Earlier quoted context omitted.

It's a bizarrely simpleminded and incorrect meme, then. The government doesn't know the exact answer - if they did we wouldn't have to file at all. Have a kid? Buy a house? Go to college? Make $60k selling illicit drugs on the black market? Get a $200 bank signup bonus? These all affect taxes. One could argue in a dystopian way that technically "the government" as a whole does know these things, but suffice to say, t…

> Have a kid? Buy a house? Go to college? Make $60k selling illicit drugs on the black market? Get a $200 bank signup bonus? Lmao in Australia, other then the drugs, yes the government knows because everything is reported to them. America is just behind.

America has famously bad government everything. Everything they touch becomes a jobs program for the least qualified. Every comedian jokes about the DMV and TSA because they're the ones most people deal with regularly, but it's depressing to realize every government run institution is just as if not more bizarre. My interactions with USCIS and DHS, who I thought would be more professional, made me question if I was on a hidden comedy show...

My favorite interaction to tell however belongs to the TSA. I went through the scanner and it flagged the back of my head. The TSA agent said he needed to verify, so put on gloves and patted the back of my head before letting me go. I wear a military cut, the back of my head is done with a #1/2 guard. For those not in the US, that's a buzz cut of length 1.5mm.

Re: Millions of Americans mess up their taxes, but a new law will help

#50

> Those other countries have much simpler tax codes than we do All German readers spew out their drink in disbelief - Pardon what?

I think you're vastly under estimating how complicated the us tax code is.

I have no idea about tha US tax code. An explanation would be welcome.
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