Do other country's have stupid income tax rules like the U.S.?

Question

things like marriage status, you can deduct hobby expenses but not medical expenses (unless its over 2% of your income)
business can deduct their legal expenses even if they're are at fault, but an individual can't deduct theirs even if they are aquitted. You have to make a choice between taking the standard deduction which is less than half the poverty level or itemizing your deduction. The tax is progressive until you get to about a million dollars then suddenly its a flat tax. If your spouce dies you suddenly have to pay higher taxes. I could go on. I'd like to hear some horror stories of other countrys tax code.

another one i just had to add. Earned inocome is taxed but unearned isn't

I have read the last years tax code and the year before it doesnt say anything about income from a hobby just expenses. If I'm wrong about unearned income then George Bush and Al Gore must be wrong for all there talk about raising the taxable minimum from 1 million to 2 million.

if you are refering to gambling winnings, well you still have to place a bet so its not really unearned but you can deduct your losses but only in the year you lost them.

the problem is the stupid tax code makers even list capital gains and interest income as unearned income.

Answer 1

I'm certain that they do, what tax is ever perfect?

Answer 2

I think you need to study up on US tax law. Most of your assertions are simply wrong.

You can only deduct hobby expenses to the extent of hobby income.

Medical expenses are subject to a 7.5% AGI limit, not 2% but if you have an HSA, there is no limitation and some things that are otherwise not deductible ARE reimbursable through the HSA.

Legal expenses that are related to the production of income, preparation of taxes, or the legal avoidance of taxes are deductible by everyone. (Legal costs for criminal defense, whether business or personal, are not deductible.)

What's the tie to the standard deduction and the poverty level? There's none that I know of.

The tax rates used to run as high as 70% for the highest earners. You have a problem with that being cut in half?? By your logic it should continue to rise until it exceeds 100%, correct??

When your spouse dies you still file a joint return in the year of their death and can file as joint for 2 more years as the surviving spouse if you have one or more dependent children.

For a foreign horror tax, how about the German Church Tax that is paid directly over to the church? It's been made optional now, but that has NOT always been the case! And how about sales taxes (VAT) that average 20% in most of Europe.

Addendum: Unearned income isn't taxed?? Damn! I had over $80k in unearned income last year and it cost me dearly in taxes! How do I get a refund of that??! Sorry, Bud, but it most certainly IS taxed!

Addendum2: You can't even read straight. The increase from $1 million to $2 million was the Estate Tax exemption. It has nothing to do with earned income. And CG and interest ARE unearned income! Go back and read the code again! You're still AFU.

Answer 3

You have a variety of misstatements in your question. Unearned income is taxed, it just isn't eligible to be counted toward the earned income credit. And hobby expenses can only be deducted to the extent that you make money from the hobby - if you have expenses, it can keep you from having to pay tax on some or all of your hobby income. And when a person reaches the top rate for taxes, they are paying over a third just for federal tax - how much would you take from them?

Answer 4

Russia has a nice clear 13 percent flat tax and people pay it. There arent thousands and thousands of pages of rules that may change from year to year