Filing Taxes in Japan and Elsewhere Is a Breeze. Why Not Here?

New York Times ^ | 04/14/2017 | T.R. Reid

[SeekAndFind]

Ah, the blithe joys of springtime in the United States. Azaleas in bloom at the Masters, breezy picnics on balmy afternoons, Easter egg hunts — and the annual ordeal of tax forms, with helpful I.R.S. instructions like this: “Go to Part IV of Schedule I to figure line 52 if the estate or trust has qualified dividends or has a gain on lines 18a and 19 of column (2) of Schedule D (Form 1041) (as refigured for the AMT, if necessary).”

Americans will spend more than six billion hours this year gathering records and filling out forms, just to pay their taxes. They will pay some $10 billion to tax preparation firms to help get the job done and spend $2 billion on tax-preparation software (programs that still require hours of work). Millions will subsequently get a notice from the I.R.S. saying they got the figures wrong, or put the right number on the wrong line or added wrong in calculating line 47 — which means more hours of work or more fees to the tax preparer.

And here’s the most maddening thing of all: It doesn’t have to be this way.

Parliaments and revenue agencies all over the world have done what Congress seems totally unable to do: They’ve made paying taxes easy. If you walk down the street in Tel Aviv, Tokyo, London or Lima, Peru, you won’t see an office of H & R Block or a similar company; in most countries, there’s no need for that industry.

In the Netherlands, the Algemene Fiscale Politiek (the Dutch I.R.S.) has a slogan: “We can’t make paying taxes pleasant, but at least we can make it simple.” It is certainly simple for my friend Michael, a Dutch executive with a six-figure income,

[madison10]

It takes a TON of forms to squeeze every last cent out of hard working Americans so the government can spread the wealth to those who do not work so hard. (There are exceptions, of course)

[dfwgator]

Lawyers and Accountants will never allow it.

[dfwgator]

If the Democrats had their way, it would be real simple.

1. How much did you make last year?

2. Send it in.

[2banana]

Because democrats accuse republicans of starving kids and kicking grandma into the street everytime it is brought up.

Special interests and power...

[DoodleDawg]

I’m guessing there are no deductions for those countries.

[rktman]

Filing? Exactly. The treasury takes XX% and you fill out nothing. No deductions etc. It is what it is. Of course a lot of accountants would probably oppose that.

[itsahoot]

If you walk down the street in Tel Aviv, Tokyo, London or Lima, Peru, you won’t see an office of H & R Block or a similar company; in most countries, there’s no need for that industry.

And that is why tax reform talk is a joke, there is no profit for those that write the tax law, in simplification.

[Uncle Miltie]

[PGR88]

Because America’s progressives like the NY Times, believe they can manipulate, coerce and fine-tune any economic system to meet whatever their fashionable goals of the day are.

Therefore, we have credits for everything from solar panels to home health care to housing loan interest. And as a consequence, a corrupt, rent-seeking class of lobbyists and politicians rise up around them. They in turn create a hairball of complexity and corruption. I know a wealthy lawyer who is rich simply by consulting on tax details of the debt-structure of building cheap apartments under sec. 8 rules

America has a huge rent-seeking, corrupt, crony-capitalist political parasite class that would rival that of any 3rd world nation

[Dilbert San Diego]

Part of the tax complexity is that we need to file extra forms to claim certain tax exemptions which reduce your tax.

For example, if you claim interest on a home mortgage or charitable contributions, you need to fill out the appropriate form, otherwise you tax bill would be higher than it would otherwise be.

This entire debate can get as complicated as the entire internal revenue code. If you want to file the Form 1040EZ one pager you can, but most of us will pay more than we need to based on the 1040EZ calculation.

Tax complexity breeds a lot of the paperwork and time and hiring outside tax preparers, in my opinion.

[Milton Miteybad]

Pre-populated tax forms might work for taxpayers whose income is mostly derived via salaries, wages, etc.

The whole idea, however, pretty much sails right out the window when it comes to self-employed taxpayers. The IRS will have no idea how much it cost in expenses for a self-employed taxpayer to realize the total revenue reflected by his Forms 1099, and would not be able to pre-populate a Schedule C or a Form 4562.

[New Jersey Realist]

Tax Form:

Name, SSN, etc.

1. Your total income: _______
2. Send amount indicated in 1. above to IRS.
3. IRS will return to you what they think you need.

[al_c]

Easy answer ... because government is in charge of it.

[New Jersey Realist]

I sent in my proposed form before I saw yours.

[right way right]

We are living in Tyranny.
We have accepted mass manipulation by tyrants who extort from us, for the purpose of controlling us.
Kill Fedzilla!

[drypowder]

To answer the question, it’s simple. The US tax system is set up in large part as a scam on the American workers to transfer American wealth to the overlords who control the US government. It’s been that way since 1913.

[Red Badger]

Nor the paper industry...............

[hanamizu]

No, to be fair, in 1913 only very high-income people were touched by the income tax. That’s how it was sold—a tax on the rich. It wasn’t until WWII that the average worker was touched by it. Then, there was no going back. I think it was during WWII that withholding was introduced as well.

[Hyman Roth]

I think it was during WWII that withholding was introduced as well.

Correct. To fund the war. It was supposed to be temporary.