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A comment on IRS tests free e-filing system that could compete with tax prep giants. Parent comment

Re:IRS tests free e-filing system that could compete with ta... by uticus on Monday May 15, 2023 @02:08PM (#35952198)
> For example, try designing a tax system that is both fair and efficient with respect to agricultural income and tech income... It won't be simple.

I love these armchair opportunities for college-level challenges without the admission fees, I'll bite. Step 1: disallow corporation as a legal taxable entity, private ownership only. Step 2: Subtract expenses from income. Step 3: Divide by 10. Step 4: If more than zero, send a check.

"Fair and efficient" in terms of opportunity is easy. In terms of outcome is a fool's game IMO

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Re:IRS tests free e-filing system that could compete with ta... by dunmalg on Monday May 15, 2023 @02:45PM (#35952764)
lol, step 1 destroys the entire stock market!
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Re:IRS tests free e-filing system that could compete with ta... by uticus on Monday May 15, 2023 @04:04PM (#35953738)
I know! Wait did I fail the class, or pass?
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Re:IRS tests free e-filing system that could compete with ta... by cyberax on Monday May 15, 2023 @02:47PM (#35952787)
> Subtract expenses from income.

But what about investments and assets? A car that you bought for the company has a limited lifetime. So its value is slowly decreasing, should that be considered an expense?

What about R&D? We want to incentivize it, so that companies do more of it. Etc., etc.

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Re:IRS tests free e-filing system that could compete with ta... by koolba on Monday May 15, 2023 @02:48PM (#35952814)
So you’ve eliminated the entire concept of depreciation? That’d make it effectively impossible to plan or operate any business with front loaded costs.
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Re:IRS tests free e-filing system that could compete with ta... by mercutio2 on Monday May 15, 2023 @07:41PM (#35956029)
I'm not a fan of this toy example but... are you under the impression businesses want to have multi-annual depreciation of their assets?

As far as I can tell, all businesses would like to be able to deduct all cash outflows whenever they occur, regardless of whether it's capex or opex. Businesses depreciate across long time cycles because that's what they're forced to do.

As long as they can carry forward losses, don't all businesses want accelerated depreciation?

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