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by ArnoVW
1593 days ago
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You're not wrong in saying that tax codes in general are complex. The problem is, they're complex for a reason. Tax codes are a tool of policy makers. They allow wealth and income distribution. They allow compensation. And they allow policy makers to promote or penalize specific behaviors or activities. Look at the legal system as a code base (in French, 'law' translates to 'code'). And imagine having 538 product owners, each asking for 'just one feature' that is both 'critical and urgent'. Is it any wonder that we are in this situation? Perhaps we should implement more sunset provisions? I don't know. But 'we need a simpler system' is sort of like 'we have too many LoC'. It's true, but not easily actionable. |
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The IRS collects tax information from most businesses with employees, banks and investment firms, so it's is comically easy to pre-load that information in a tax return. Ask a few simple questions (did you buy a house, did you start a business, do you have a new dependent). Pre-fill what you can. Generate a report which you can directly file or share with your tax expert. Many developed countries do this.
While this (correctly) tanks an entire industry of tax preparation software, it actually makes it easier for politicians to do their thing. Right now a tax break for X is buried under form 92921X2 which you learn about after reading the instructions for line 48 on schedule 8812 which you are filling in after being told to in the supplementary instructions for line 21 on your 1099. If you elected to use the alternative streamlined maximum option, of course, if you chose for the default minimum compensation model, well, those are different forms.
With a properly made simple official tax filing process, you just see you got an extra $400 back this year because of the tax break for X.