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Re:Tax preparation industry alarmed over plan for IRS free t... by iambateman on Friday March 31, 2023 @12:30AM (#35382584)
I hope the tax prep industry is scared out of their minds…

Asking citizens to pay their fair share of taxes should not include them spending a day or two every year trying to find a piece of paper to mail to an agency which _already has that piece of paper_ and is categorically more equipped to process it.

Re:Tax preparation industry alarmed over plan for IRS free t... by conanbatt on Friday March 31, 2023 @12:46AM (#35382704)
I'd prefer for the IRS to be scared out of their minds instead citizens, but maybe its just me that cares about liberty.
Re:Tax preparation industry alarmed over plan for IRS free t... by emptybits on Friday March 31, 2023 @01:21AM (#35382938)
You're catching a lot of flak and downvotes for your comment. I'm Canadian yet your general sentiment, made famous by Thomas Jefferson, seems pretty reasonable to me: "When the people fear their government, there is tyranny; when the government fears the people, there is liberty."

Yet now it seems people think it's reasonable to fear an elected government (and its civil servants) as if we were subjects instead of citizens.

Back on topic ... the effort involved in tax preparation here is also ridiculous. Millions of man-hours wasted every year on this. !!? Reform is needed.

Re:Tax preparation industry alarmed over plan for IRS free t... by skywal_l on Friday March 31, 2023 @02:46AM (#35383547)
The original sentence is:

> I hope the tax prep industry is scared out of their minds

I am pretty comfortable with an elected government putting the general interest before Inuit's. I am pretty confident that Thomas Jefferson would have agreed.

Re:Tax preparation industry alarmed over plan for IRS free t... by conanbatt on Friday March 31, 2023 @04:48PM (#35393438)
Intuit is not the owner of the IRS filing process.
Re:Tax preparation industry alarmed over plan for IRS free t... by Brybry on Friday March 31, 2023 @03:26AM (#35383796)
"I hope we shall take warning from the example and crush in it’s birth the aristocracy of our monied corporations which dare already to challenge our government to a trial of strength, and to bid defiance to the laws of their country" -- Thomas Jefferson (12 November 1816)

https://founders.archives.gov/documents/Jefferson/03-10-02-0...

Re:Tax preparation industry alarmed over plan for IRS free t... by knodi123 on Friday March 31, 2023 @12:55AM (#35382758)
Well that's a bigoted attitude. As long as we acknowledge that taxes are necessary for the functioning of a country, I'd rather our tax agency be calm, professional, and boring.
Re:Tax preparation industry alarmed over plan for IRS free t... by mansion7 on Friday March 31, 2023 @01:03AM (#35382799)
Bigotry against tax collectors is a new one. Are tax enforcers an oppressed or marginalized community?
Re:Tax preparation industry alarmed over plan for IRS free t... by knodi123 on Friday March 31, 2023 @01:09AM (#35382849)
> Are tax enforcers an oppressed or marginalized community?

Well, historically, yes. But in my dictionary, bigoted means "obstinately or unreasonably attached to a belief, opinion, or faction, in particular prejudiced against or antagonistic toward a person or people on the basis of their membership of a particular group". So you can certainly be bigoted against the IRS and its employees. No need for the "oppressed or marginalized" part.

Re:Tax preparation industry alarmed over plan for IRS free t... by komali2 on Friday March 31, 2023 @01:37AM (#35383051)
> Well, historically, yes.

Are we talking about the same people here? Cause when I hear tax collector I think sheriff of Nottingham lol. I feel like something has gone way off the rails here.

Re:Tax preparation industry alarmed over plan for IRS free t... by knodi123 on Saturday April 01, 2023 @10:52PM (#35406678)
The "well historically, yes" was a silly quip, but I was thinking about the story of Saul in the bible, who was despised and endangered due to his career as a tax collector.
Re:Tax preparation industry alarmed over plan for IRS free t... by SilasX on Friday March 31, 2023 @01:24AM (#35382958)
Like knodi123 said, yes! The New Testament uses tax collectors as a frequent stand-in for "obvious degenerate everyone hates".
Re:Tax preparation industry alarmed over plan for IRS free t... by lmm on Friday March 31, 2023 @02:04AM (#35383230)
I met a guy in Cornwall who told me there are locals who won't drink in the same pub as him because his grandfather was the local customs man.
Re:Tax preparation industry alarmed over plan for IRS free t... by cultureswitch on Tuesday April 04, 2023 @10:10AM (#35439895)
That's them deciding for themselves not to associate with him on a personal basis.

Though personally I wouldn't blame the kid for the sins of the father or grandfather.

Re:Tax preparation industry alarmed over plan for IRS free t... by jMyles on Friday March 31, 2023 @01:04AM (#35382807)
I'm not sure if you mean it this way, but your comment reads as if you presume that taxes on income are the only way the provide for "the functioning of a country".

I prefer wholesale deprecation of the state - also to advance functioning of the country - but even during the time period where the state continues to exist, I think that income tax is specifically unjust (compared to taxes on gains and consumption, for example).

Re:Tax preparation industry alarmed over plan for IRS free t... by forgetfreeman on Friday March 31, 2023 @01:07AM (#35382836)
If that's your jam why wait, book your flight to Somalia today and start living the dream.
Re:Tax preparation industry alarmed over plan for IRS free t... by komali2 on Friday March 31, 2023 @01:40AM (#35383064)
Arguably the various insurgencies and federal government of somalia all form a state. The communities over which they rule have little say in the governance. If the OP is arguing for anarchy or communism, Somalia isn't a good example.
Re:Tax preparation industry alarmed over plan for IRS free t... by IG_Semmelweiss on Friday March 31, 2023 @01:52AM (#35383127)
The country ran just fine with 0% income taxes until 1913.

We were almost 150 old as a nation then. We had already become a superpower, as WW1 and WW2 would shortly confirm.

Re:Tax preparation industry alarmed over plan for IRS free t... by checkyoursudo on Friday March 31, 2023 @02:30AM (#35383430)
There were income taxes before 1913.

e.g. https://en.wikipedia.org/wiki/Revenue_Act_of_1861

Re:Tax preparation industry alarmed over plan for IRS free t... by somenameforme on Friday March 31, 2023 @10:23AM (#35387609)
He means permanent. In times of urgent need, such as in times of war, the government would raise money as necessary. The federal government assessing a permanent tax on people was a huge deal and required a constitutional amendment, the 16th, passed in 1913. The act you're referencing was in response to the Civil War (which started in 1861), and would be allowed to ultimately expire about a decade later.
Re:Tax preparation industry alarmed over plan for IRS free t... by culturestate on Friday March 31, 2023 @02:02AM (#35383209)
> The country ran just fine with 0% income taxes until 1913.

Sure, apart from that whole Civil War fracas in the mid-1800s and the ensuing decades of reconstruction.

Re:Tax preparation industry alarmed over plan for IRS free t... by brigandish on Friday March 31, 2023 @02:31AM (#35383438)
The Civil War was a fight over the efficiency and ability of the country to run itself via taxes or not?
Re:Tax preparation industry alarmed over plan for IRS free t... by culturestate on Friday March 31, 2023 @02:41AM (#35383501)
My point is that regardless of the tax regime, America pretty clearly did not run "just fine" in that era.
Re:Tax preparation industry alarmed over plan for IRS free t... by brigandish on Friday March 31, 2023 @03:10AM (#35383694)
It seems that you could also say it didn't run fine if there were an invasion, for much the same reasons, but that wouldn't, in most cases, make it a valid critique of the way things were being run, especially with regard to the actual subject here, which regards the tax regime.
Re:Tax preparation industry alarmed over plan for IRS free t... by HideousKojima on Friday March 31, 2023 @09:24AM (#35386792)
Why do people always used a collapsed socialist state as their "gotcha" against libertarian type arguments?

https://en.m.wikipedia.org/wiki/Somali_Revolutionary_Sociali...

Re:Tax preparation industry alarmed over plan for IRS free t... by forgetfreeman on Friday March 31, 2023 @10:09AM (#35387395)
because all of the libertarian ideals apply in any collapsed state (no governmental controls, unfettered free market, etc). What that state started as before it collapsed isn't relevant.
Re:Tax preparation industry alarmed over plan for IRS free t... by HideousKojima on Friday March 31, 2023 @10:08PM (#35396324)
Somalia doesn't lack a state though, it has competing warlords fighting for control of the remains of the socialist state.
Re:Tax preparation industry alarmed over plan for IRS free t... by Apocryphon on Sunday April 02, 2023 @03:10PM (#35414023)
And you presume in the absence of a state, no force will attempt to fill the power vacuum?
Re:Tax preparation industry alarmed over plan for IRS free t... by conanbatt on Friday March 31, 2023 @04:50PM (#35393462)
There's no need, you can do it today from within any country by living with cash.
Re:Tax preparation industry alarmed over plan for IRS free t... by knodi123 on Friday March 31, 2023 @01:08AM (#35382841)
> your comment reads as if you presume that taxes on income are the only way the provide for "the functioning of a country".

Did I say income?

Re:Tax preparation industry alarmed over plan for IRS free t... by jMyles on Saturday April 01, 2023 @02:00PM (#35402421)
Maybe I'm missing a piece here, but the entire discussion (and indeed the thread in question) is regarding the filing of income taxes.
Re:Tax preparation industry alarmed over plan for IRS free t... by somenameforme on Friday March 31, 2023 @02:24AM (#35383391)
I think there are kind of two sides barking at each other when both largely agree on the same things. While there are a handful of people on some extreme of anti/pro tax stuff - perhaps anarcho-libertarians or communists - nearly everybody falls somewhere in the moderate middle. And here I think everybody would obviously agree that some taxation is necessary for the functioning of a country.

The question is how much? Federal revenue in 2022 was $4.9 trillion. That's more than $37,000 per household in America. The median household income in the US is $71,000. [1] So I think these sort of data are what "really" draws the dividing line. Is $37,000 per household enough to ensure the functioning of a country? Is the problem more with a lack of money, or more with how that money is being spent?

[1] - https://fred.stlouisfed.org/series/MEHOINUSA672N

Re:Tax preparation industry alarmed over plan for IRS free t... by brewdad on Friday March 31, 2023 @02:41AM (#35383506)
Your figures are meaningless in a world where the top 1 percent of households control half the wealth. The median household is not paying anywhere near $37,000 in federal taxes. My household is in the top 5-8 percent and didn't pay that much.
Re:Tax preparation industry alarmed over plan for IRS free t... by samus on Friday March 31, 2023 @03:07AM (#35383671)
Splitting the federal revenue across household doesn't make sense since a lot of these taxes are collected from companies as well. Also, in the presence of a progressive taxation rates splitting it across the number of households makes it even worse.
Re:Tax preparation industry alarmed over plan for IRS free t... by somenameforme on Friday March 31, 2023 @06:29AM (#35384924)
You're misunderstanding the point. When the government collects an average of $37,000 per household, that means they are also spending an average of $37,000 per household (actually substantially more, but let's stick to ideal scenarios for now). Ought that be enough money ensure the functioning of a country?
Re:Tax preparation industry alarmed over plan for IRS free t... by samus on Friday March 31, 2023 @12:11PM (#35389262)
That's hard to tell without comparisons to other countries. Also, my gut feeling is that most of that spending trickles down back to those households. A lot goes into social security, healthcare, and defense, which drive huge part of the US economy and maintain competitive advantages for it across the world.

My point still stands that the $37k per household are just an illustration, as the tax base are not just households, and that a lot of what US foreign policy achieves is to the benefit of a very few of those households.

Re:Tax preparation industry alarmed over plan for IRS free t... by XorNot on Friday March 31, 2023 @03:19AM (#35383751)
This is all irrelevant. If more funding for the IRS increases tax revenues (which it does, at a rate of $7 for each $1 last I checked) then that's revenue coming from taxes which are legally owed and not being paid.

If you are paying taxes as you legally are required too, then they are higher then necessary because other people are cheating the system.

Re:Tax preparation industry alarmed over plan for IRS free t... by dctoedt on Friday March 31, 2023 @03:08AM (#35383678)
Rob? Is that you?
Re:Tax preparation industry alarmed over plan for IRS free t... by DangitBobby on Friday March 31, 2023 @12:52AM (#35382738)
What liberty are we protecting here, exactly?
Re:Tax preparation industry alarmed over plan for IRS free t... by klyrs on Friday March 31, 2023 @01:12AM (#35382868)
Liberty to forget the "without representation" part of that rallying cry, apparently.
Re:Tax preparation industry alarmed over plan for IRS free t... by conanbatt on Friday March 31, 2023 @04:52PM (#35393479)
I pay taxes in the US and I am not allowed to vote, so the phrase applies specially to me and 25% of the California population.
Re:Tax preparation industry alarmed over plan for IRS free t... by klyrs on Saturday April 01, 2023 @04:00PM (#35403558)
Ironic, isn't it? The party that hates taxes the most is also the most aggressive in the pursuit of disenfranchisement.
Re:Tax preparation industry alarmed over plan for IRS free t... by komali2 on Friday March 31, 2023 @01:42AM (#35383069)
They said tax preparation industry. That's not citizens, that's the major ruling class in the united states, directly and indirectly responsible for many laws at the federal and local levels. Sometimes various branches of the government even consult them to write policy directly, skipping the lobbying step.
Re:Tax preparation industry alarmed over plan for IRS free t... by wwweston on Friday March 31, 2023 @01:13AM (#35382885)
The cause of liberty will probably be better served if you distinguish aptly between general categories like "citizens" vs tax preparers lobbying against the state providing some margin of built-in tax prep services.

Public defenders do not preclude private defense in the courts, they provide an option for people who don't have other options or don't like the ones they have. Public tax prep would probably work much the same. Mostly this expands liberty rather than taking it.

Re:Tax preparation industry alarmed over plan for IRS free t... by KyeRussell on Friday March 31, 2023 @01:13AM (#35382879)
You could’ve said that you’ve never left the US and not made me sit through all that tripe.
Re:Tax preparation industry alarmed over plan for IRS free t... by conanbatt on Friday March 31, 2023 @04:52PM (#35393487)
I am not american.
Re:Tax preparation industry alarmed over plan for IRS free t... by silisili on Friday March 31, 2023 @01:50AM (#35383118)
Don't forget that the IRS is one of the largest purchasers of ammunition of any govt agency. That alone should be enough to give most people pause...
Re:Tax preparation industry alarmed over plan for IRS free t... by culturestate on Friday March 31, 2023 @01:58AM (#35383182)
> Don't forget that the IRS is one of the largest purchasers of ammunition of any govt agency.

“The IRS purchases guns and ammunition for special agents in its criminal investigation division, a law enforcement branch established in 1919. The typical IRS auditors that Americans would encounter in a routine audit are unarmed.

…

Special agents train for weeks at the National Criminal Investigation Training Academy in Georgia, the 2021 report said. That includes firearms training and handgun qualifications for agents, which is a big reason for the large orders for ammunition.”

https://www.politifact.com/factchecks/2022/aug/12/matt-gaetz...

Re:Tax preparation industry alarmed over plan for IRS free t... by silisili on Friday March 31, 2023 @02:03AM (#35383218)
That explanation doesn't make me feel any better.

I'm not blaming Biden or a boogeyman army. It doesn't make sense at all that a revenue department purchases guns and ammunition. Does your company's accounting department train with weapons and purchase large amounts? Why does the US Government?

Let the IRS do money works, and any of the other armed departments do the shooting, I guess.

Re:Tax preparation industry alarmed over plan for IRS free t... by culturestate on Friday March 31, 2023 @02:21AM (#35383367)
> It doesn't make sense at all that a revenue department purchases guns and ammunition.

Historically, it makes plenty of sense. Financial crimes can’t always be solved behind a desk - there was a time when most tax evasion investigations were against gangsters running illegal liquor operations, for example. Al Capone was arrested by treasury agents, not the FBI.

Whether it still makes sense in 2023 is another question that I’d never really thought about until this moment, but my knee jerk reaction is…maybe it does? Hoover taught us what happens when you concentrate too much power in a single law enforcement agency.

Re:Tax preparation industry alarmed over plan for IRS free t... by XorNot on Friday March 31, 2023 @03:25AM (#35383787)
Questioning why agents of any government department that does field work might need to be armed, in the US, land of "buy a gun at Walmart" seems like an odd take, when you have people open carrying to go to Starbucks.
Re:Tax preparation industry alarmed over plan for IRS free t... by midoridensha on Friday March 31, 2023 @05:11AM (#35384447)
No, I think it's just because of an overall lack of centralization and the tendency for US federal agencies to continue to grow in power instead of coordinating with other agencies, resulting in a massive amount of duplication of functions and capabilities.

In a well-designed government, the IRS would not have any armed agents. If they have an operation where they need armed support, they'd simply call up some other agency (perhaps the FBI, or even local police or SWAT teams) that specializes more in armed agents and operations, and partner with them to conduct the operation. IRS agents don't need to shoot at people; they can let some other highly-trained people do that, and then come in after the bullets have stopped flying and seize documents and analyze them.

Re:Tax preparation industry alarmed over plan for IRS free t... by adamlett on Friday March 31, 2023 @03:09AM (#35383685)
1. Corporations are not citizens.

2. From reading this thread, it seems US citizens are scared out of their minds. Scared of making a mistake, when filing their taxes. And it appears that Biden's proposed reform aims to alleviate that fear.

Re:Tax preparation industry alarmed over plan for IRS free t... by syradar on Friday March 31, 2023 @12:57AM (#35382770)
Here in Sweden my employer reports my income tax and my investments app reports capital gains, to the Tax Authority. Last week I could log in, review the data, and e-sign it in less than 5 minutes. It turns out that I payed 53.80 dollars to much tax last year. Since I filed my taxes early (before March 30) they will pay it back on April 6 (instead of June 9).
Re:Tax preparation industry alarmed over plan for IRS free t... by davidkuennen on Friday March 31, 2023 @01:28AM (#35382988)
Same in Germany.
Re:Tax preparation industry alarmed over plan for IRS free t... by Hamuko on Friday March 31, 2023 @01:30AM (#35382992)
I got a message on Saturday of all days that my prefilled tax return for 2022 was ready. Logged in to the Finnish tax services website and found out that was the government owes me about 100 euro in overpaid taxes. Won't be paid out until August though.

I did have to go correct my tax information for 2023. For some reason my work-from-home tax deduction was set manually to 900€ instead of the full 920€ that I'm allowed. Hopefully now my 2023 tax filings will be correct.

Re:Tax preparation industry alarmed over plan for IRS free t... by bouke on Friday March 31, 2023 @12:59AM (#35382784)
Same here in The Netherlands.
Re:Tax preparation industry alarmed over plan for IRS free t... by masklinn on Friday March 31, 2023 @01:19AM (#35382918)
I think at this point it’s probably easier to list european countries where you still can’t easily e-file.
Re:Tax preparation industry alarmed over plan for IRS free t... by Helmut10001 on Friday March 31, 2023 @01:30AM (#35382990)
Germany
Re:Tax preparation industry alarmed over plan for IRS free t... by imtringued on Friday March 31, 2023 @02:03AM (#35383211)
I use Elster.
Re:Tax preparation industry alarmed over plan for IRS free t... by Helmut10001 on Friday March 31, 2023 @03:15AM (#35383729)
This was a reference to this statement:

> Asking citizens to pay their fair share of taxes should not include them spending a day or two every year trying to find a piece of paper to mail to an agency which _already has that piece of paper_ and is categorically more equipped to process it.

There are so many duplicate fields and redundant parts in Elster and the pre-fill function is a joke.

Re:Tax preparation industry alarmed over plan for IRS free t... by kybernetyk on Friday March 31, 2023 @05:24AM (#35384533)
I'm regularly filing taxes in the UK and in Germany. The German ELSTER system is a bad joke compared to how this is handled in the UK.

In the UK it's a bunch of nicely designed web forms with clear worded explanations what they expect you to fill in the fields.

In Germany it's ... well you can be masochistic and try to use ELSTER webapp which runs only on certain browsers. With explanations like "fill in here any amount if you fall under §223 EKST, 4 II".

So you either get a paid 3rd party software which still isn't the quality of the official UK filling service (somehow Germans have a love for their cryptic explanations directly referencing laws - god forbid someone would use simple and clear explanations) or you pay a professional to do your taxes. Which is what most people do.

Re:Tax preparation industry alarmed over plan for IRS free t... by isoprophlex on Friday March 31, 2023 @01:19AM (#35382919)
Heavens forbid you have a foreign sounding surname, though.

https://en.m.wikipedia.org/wiki/Dutch_childcare_benefits_sca...

Re:Tax preparation industry alarmed over plan for IRS free t... by ahoef on Friday March 31, 2023 @02:04AM (#35383231)
This is as bad as it gets and something that should shame us all. But it has nothing to do with filing e-taxes.
Re:Tax preparation industry alarmed over plan for IRS free t... by King-Aaron on Friday March 31, 2023 @02:02AM (#35383204)
Same in Australia. The complexity increases if you have investment properties, or self manage tax, etc. But for the large majority of employees in the country you can simply log onto their website and effectively one-click confirm that your details are all correct, and that's it.
Re:Tax preparation industry alarmed over plan for IRS free t... by theteapot on Friday March 31, 2023 @02:38AM (#35383482)
Try running a business or being a sole trader. It's not that simple if you want to claim any kind of deduction.
Re:Tax preparation industry alarmed over plan for IRS free t... by gorgoiler on Friday March 31, 2023 @02:08AM (#35383260)
The US system is incredibly complex. The federal government wields very little on-the-ground political power compared to states, but what power it does have is effected via tax policy.

It is as if the EU wanted to regulate mobile phone roaming charges by offering a tax rebate on your phone bill, which it then used to calculate a penalty that is added to the phone companies corporation tax bills. There is no federal EU tax bill passed on to citizens of course but if there were you might continue to have your payroll taxes go to your country’s government but you could then submit your phone bills to the federal EU government to get money back from any tax they levy on you. They’d have to levy it in the first place but to avoid unfairness they offset it against anything your state takes, first.

At the other end of the spectrum, some city funding is done via income taxes. That seems a lot more equitable than, say, the UK where you pay a rate based on the value of the building your landlord bought. Because it’s an income tax though, and because double taxation is anathema to any voter, it too must be used to offset state and federal income tax.

In a way it would be a lot easier if each entity could just stick to one kind of tax. Maybe city funding via property tax, state funding via income tax, and federal funding via corporation tax. The power of federal government is restricted via the tenth amendment, so it’s always going to try to end run states rights via the only means it has — your tax form. That seems unlikely to change. Also I’m not sure my off-the-cuff idea of having the federal government answer only to corporations (via corporation tax) is a very good one, but it is a good example at least of how the machinations of taxation, if not the politics, might be easier if things were picked apart.

Re:Tax preparation industry alarmed over plan for IRS free t... by Dalewyn on Friday March 31, 2023 @03:29AM (#35383820)
>The US system is incredibly complex.

To give some idea for our not-American friends, here's a very general, far too simplified gist of how the tax system is laid out:

* Federal taxes, overseen by the IRS.

* State taxes, separate and independent from Federal taxes and overseen by the governments of each State.

* County taxes, mostly separate and independent from State taxes and overseen by each county's government.

* Municipal taxes, mostly separate and independent from County taxes and overseen by each municipality.

Taxpayers need to file their taxes with the IRS (Federal), their State, their County, and if applicable their Municipality. No, these taxes are not handled together in the bureaucratic machine (for good reason; individual rights and all that).

The reasons for the complexity are rooted in how the United States is structured politically, where having certain rights and freedoms at each level of governance is a very big deal.

Re:Tax preparation industry alarmed over plan for IRS free t... by ianai on Friday March 31, 2023 @04:14AM (#35384138)
Not all counties nor municipalities have yearly local taxes.
Re:Tax preparation industry alarmed over plan for IRS free t... by danielrpa on Friday March 31, 2023 @05:51AM (#35384679)
MOST counties and municipalities do not have local income taxes.
Re:Tax preparation industry alarmed over plan for IRS free t... by mschuster91 on Friday March 31, 2023 @04:22AM (#35384186)
Here in Germany, the state tax authorities coordinate collecting taxes and forward them to the federal government.
Re:Tax preparation industry alarmed over plan for IRS free t... by vkou on Friday March 31, 2023 @04:34AM (#35384254)
This complexity does not require a private tax prep industry for 99% of taxpayers.

All of the various tax collection agencies already manage to do all the work necessary to determine my tax bill. They do it every year.

Re:Tax preparation industry alarmed over plan for IRS free t... by rat9988 on Friday March 31, 2023 @05:50AM (#35384675)
This problems exist in many other countries with fully automated taxing for salarymen.
Re:Tax preparation industry alarmed over plan for IRS free t... by jrochkind1 on Friday March 31, 2023 @12:01PM (#35389093)
But literally even JUST THE FEDERAL taxes is incredibly complex.

As far as income taxes, the state income taxes have always been pretty simple for me. City even simpler, and I've lived place with and without them. Most of the complexity is federal (although in part because state and city take the income from the federal as their starting point). But that's enough! And sure, adding more on top doesn't help.

The federal taxes keep adding complexity, even for people with relatively simple situations. It's true for low-wage earners who don't have many assets, federal taxes can be... relatively simple. Maybe as simple as European ones. I dunno, it's a mess.

Re:Tax preparation industry alarmed over plan for IRS free t... by japanuspus on Friday March 31, 2023 @03:37AM (#35383891)
Having done personal taxes in both Scandinavia (Denmark) and the US, I would claim the opposite: The US system is relatively simple, and finding precise instructions is possible. Admittedly, my life was simpler then (rental property, no investments), but event with international income I remember it as a mater of filling out two sheets of paper.
Re:Tax preparation industry alarmed over plan for IRS free t... by AlchemistCamp on Friday March 31, 2023 @02:18AM (#35383340)
Do you do any entrepreneurial activity at all or is your entire income salaried employee work?
Re:Tax preparation industry alarmed over plan for IRS free t... by brewdad on Friday March 31, 2023 @02:36AM (#35383467)
In a sane tax code it wouldn't matter. Revenue = Income.
Re:Tax preparation industry alarmed over plan for IRS free t... by nicky0 on Friday March 31, 2023 @02:53AM (#35383591)
In a sane tax world you tax profit not revenue.
Re:Tax preparation industry alarmed over plan for IRS free t... by mjx0 on Friday March 31, 2023 @03:53AM (#35383992)
Does that not imply that everyone else — through taxes — subsidizes losses, and thus poor business decisions? If so, why should these be subsidized for businesses? Should regular expenses also be subsidized for individuals?
Re:Tax preparation industry alarmed over plan for IRS free t... by nicky0 on Friday March 31, 2023 @04:05AM (#35384079)
No, it doesn't imply that.

Consider a scenario where I have £100 and decide to start a business as a self-employed individual. I invest £100 in inventory, but only manage to sell it for £100, resulting in zero profit. Under your hypothetical tax system, the tax authority would demand (let's say) 20% of my revenue, which amounts to £20. However, I don't have £20 to pay since I made no profit. Consequently, I am now £20 in debt to the state and essentially penalized for trying.

For a self-employed person, or a company, profit is analogous to an employed person's salary. Both represent the net flow of money or disposable income resulting from business activities or employment. This is why self-employed individuals and companies are taxed based on their profit, while employed persons are taxed on their salary.

Moreover, your use of the term "subsidy" is incorrect. A subsidy implies that the government provides financial support. In the case of a loss, the government does not send money to the individual or company. Instead, they simply refrain from taxing them, which is not a subsidy.

Note also in this example that in investing my £100, I likely generated tax revenue for the government through taxes on sales, salary, and profits on those who I bought from. So even though I paid no income tax, my activity still resulted in positive tax flows.

Re:Tax preparation industry alarmed over plan for IRS free t... by qeternity on Friday March 31, 2023 @03:05AM (#35383654)
What?! You can’t be serious. You think that a local shop with $1m in revenue but 5% net margins should pay the same tax as a services business with $1m in revenue but 50% net margins?
Re:Tax preparation industry alarmed over plan for IRS free t... by altacc on Friday March 31, 2023 @03:17AM (#35383734)
Not PP but I've been employed & self employed in Norway, with a similar system, and being self employed was a bit more work throughout the year, keeping up with invoices & receipts. You have to keep up to date for that as you have to send regular VAT statements. You need to use some accounting software, but if you're a small business you probably have that anyway. That accounting software has to integrate to the tax authorities and at end of year was just push a button to submit final numbers.

Then you wait for your updated tax return later in the year, which would automatically combine self-employed earnings, wages, investments, debts, tax deductions due to paying for childcare, etc... I normally have to spend 10-15 minutes to correct that if something like a travel calculation for my employer is wrong.

Re:Tax preparation industry alarmed over plan for IRS free t... by 29athrowaway on Friday March 31, 2023 @02:20AM (#35383351)
Same in most countries.

The US was a weird model where they ask you to resubmit the same information they already have in hope you will declare more income than they know about.

In part, because the US taxes you on your global income, not only your US income, which means that there will be income they won't know about unless you declare it.

For the majority of people that only have income from salary, it's an unreasonable burden and Intuit has lobbied the government so that it continues to be a burden.

Re:Tax preparation industry alarmed over plan for IRS free t... by samus on Friday March 31, 2023 @02:52AM (#35383584)
It's not that income abroad would be particularly easy to hide. Since financial institutions around the world have reporting duties regarding US customers, Uncle Sam will find out about it. The true, completely legal way to hide income abroad is establishing holding structures to siphon most of it into tax shelters abroad.
Re:Tax preparation industry alarmed over plan for IRS free t... by 29athrowaway on Friday March 31, 2023 @04:34PM (#35393248)
Is FATCA effective? how automatic is it?
Re:Tax preparation industry alarmed over plan for IRS free t... by gostsamo on Friday March 31, 2023 @02:34AM (#35383448)
Funny, but it is the same here in Bulgaria. Terrible, horrible, no good, very bad governmental intervention.
Re:Tax preparation industry alarmed over plan for IRS free t... by hungryforcodes on Friday March 31, 2023 @02:35AM (#35383454)
I hear Sweden is also a cashless society with occasional negative interest rates -- sounds wonderful. Are there any benefits? For example if you pay on negative interest rates can you apply that to your income tax filing?
Re:Tax preparation industry alarmed over plan for IRS free t... by ge96 on Friday March 31, 2023 @02:27AM (#35383405)
Yeah I dread doing taxes. One time I forgot something and had to amend oh man that sucked.
Re:Tax preparation industry alarmed over plan for IRS free t... by dguest on Friday March 31, 2023 @03:27AM (#35383801)
That's funny, my friend just fills out his taxes as soon as they are eligible to be submitted with rough guesses. The IRS sends the forms back to him corrected (they already had the correct form) and then he mails them back again.

The US already has pre-filled forms, the interface for the "pre fill" button is just a bit convoluted.

Re:Tax preparation industry alarmed over plan for IRS free t... by cultureswitch on Friday March 31, 2023 @04:24AM (#35384199)
So really they already know what they expect you to write in your tax forms, they just want you to do this as if it was a written exam?
Re:Tax preparation industry alarmed over plan for IRS free t... by dguest on Friday March 31, 2023 @04:51AM (#35384353)
Yes, it's basically a written exam. The grading is done as a free service by the government, or a handout if you will.
Re:Tax preparation industry alarmed over plan for IRS free t... by tekla on Friday March 31, 2023 @08:21AM (#35385973)
They give you a chance to declare income that they may not know about at that very moment.

It is a strong incentive to not lie on your taxes

Re:Tax preparation industry alarmed over plan for IRS free t... by dguest on Friday March 31, 2023 @05:12AM (#35384452)
Them being scared out of their minds is the problem: that's why they are paying millions on lobbying to spread the fear.

I would prefer that they quietly recognize that their time is up and die with whatever dignity they might have left.

Re:Tax preparation industry alarmed over plan for IRS free t... by Hilarity1 on Friday March 31, 2023 @10:15AM (#35387482)
The taxing authority is asking you to fill it out because they don’t know what deductions you will take. That’s why you do it.
Re:Tax preparation industry alarmed over plan for IRS free t... by coryfklein on Friday March 31, 2023 @11:24AM (#35388494)
> an agency which _already has that piece of paper_

Sooo... the IRS knows that you installed solar panels last year and will be taking an energy credit for them? They know how much bitcoin you sold? How much mortgage interest you'll be deducting? The strike price of the stock options you exercised in your private company, and their current fair market value?

There's a bajillion variables that go into filing a tax return, and only you are the one that knows all of them, and sometimes not even then! This idea that the government "already knows" how much you owe in taxes is a complete fiction.

Re:Tax preparation industry alarmed over plan for IRS free t... by xracy on Friday March 31, 2023 @08:36PM (#35395741)
More than the tax prep industry being scared (which they clearly already are given the amount of lobbying that they do (I think the largest of any industry the last time I looked)), I hope that the Biden administration has the guts to actually follow through on this.

This is a remarkably consistent topic that most of the populace agrees on, and is only at all difficult because of this lobbying.