Why is filing your income taxes so complicated? Wouldn't it be easier just to pay a percentage of your income?

Question

If we just had to pay a percentage, it would be more efficient, and we could cut the entire IRS budget out of the Federal budget and do something better with that money - like paying for more wars or something.

Answer 1

It's difficults because if it's hard to get what you deserve back, then you probably won't go thru the trouble. So they get to keep your money.
The EASIEST would be to get rid of the "Income Tax" (remember, they take 30% before you get your check) and make a 15% "Sales Tax" (on average - 7% increase from existing). Simple math...You have 23% more money in your pocket.
This way, all these "under the table" workers won't skip out on paying taxes.

Answer 2

We do just pay a percentage of our income in the US. However, the complicated nature of what is income, what is not, and what is exempt from taxation, plus various other credits and deductions.

I agree that removing loopholes would make it more efficient, however, each and every loophole was created by an act of Congress - which means that there was an interest group powerful enough to create it. If you try to get rid of it, watch them come up from nowhere and destroy it.

Answer 3

The federal government has too many loopholes and complex tax law to allow that. Wouldnt that be nice! Keep dreaming.

Answer 4

Your are so right. A simple national sales tax charged on everything everyone purchased with no exceptions would be extremely simply and fair to everyone in the country and would do away with the I.R.S.

Of course this is why it will never happen.

Answer 5

That would result in wealthy people like lawyers paying more taxes.

Who do you think makes the IRS laws?

Answer 6

Yeah, but this isn't a socialist economy.

Try moving to a third world country....

I hear Fiji is nice...