ST Alpha - "Tax simplification has two major barriers that I see." (Reading a Post)

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In response to "Tax simplification is supported by all sectors of the political spectrum; I'm surprised it never gets anywhere. -- nm" by mara

Tax simplification has two major barriers that I see.

Posted by ty97 Apr 13 '10, 16:51

1. The focus is on simplifying the brackets (which are easy) as opposed to the myriad random rules (which are voluminous, oddly written, hard to comprehend with multiple degrees)

2. Everyone agrees that they want it simplified. But nobody/nocompany wants *their* favorite credits, exceptions, etc taken away. What representative is going to take the chance of taking that hit during election season? ("Representative Smith voted to raise taxes on African-American dwarf hermaphrodites with visual difficulties and three children. That Bastard.)

Responses:

[deleted] 39
- Well sure. When I say "everybody" I mean "human beings", not the IRS - ty97 Apr 13, 17:15 31
  - [deleted] 30
    - I don't for a second believe it's goign to happen. - ty97 Apr 13, 17:20 29
      - [deleted] 28
        
        US taxes seem a bit more complicated from how they get described here, but that seems like a red herring - Reagen Apr 13, 17:25 27
        
        This is true to an extent, but prosecution is not the sole risk. - ty97 Apr 13, 17:28 1
        
        And unlike underpayment, the IRS won't tell you you did it. -- nm - the liioulu who is an idiot Apr 13, 17:29
        
        [deleted] 24
        
        Is that the number who "qualify for" or number who "claim"? - ty97 Apr 13, 17:30 17
        
        [deleted] 16
        
        I've of the opinion that people shouldn't be *required* to use a tax preparer in order to properly file taxes. -- nm - ty97 Apr 13, 17:36 15
        
        [deleted] 14
        
        I don't buy the analogy. - ty97 Apr 13, 17:46 13
        
        [deleted] 12
        
        Again, you're wrong. - ty97 Apr 13, 17:53 10
        
        [deleted]
        
        [deleted]
        
        It's not mandatory, or a law. - the liioulu who is an idiot Apr 13, 17:55 7
        
        No ones "required" to hire a lawyer to defend them in court either. - scorpion Apr 13, 18:09 1
        
        Few people represent themselves in court. Quite a few people file their own taxes without a hitch. -- nm - the liioulu who is an idiot Apr 13, 18:16
        
        And no one is required by law to hire an attorney... - Stephen Apr 13, 18:02 4
        
        [deleted] 2
        
        Actually, no it's not. There are some areas that are so convoluted that without extensive training and experience in that area it doesn't make sense - Stephen Apr 13, 18:10 1
        
        View more posts in this thread ...
        
        And most people who file their own taxes do it right. - the liioulu who is an idiot Apr 13, 18:05
        
        Some tax preparers do their own taxes, some hire other preparers to do it. - the liioulu who is an idiot Apr 13, 17:50
        
        401ks aren't deductable? -- nm - Reagen Apr 13, 17:30 5
        
        you don't have to itemize for that. - ty97 Apr 13, 17:32
        
        [deleted] 2
        
        Oh, I see - Reagen Apr 13, 17:35 1
        
        [deleted]
        
        No, they just aren't taxable unless you take money out of them. -- nm - the liioulu who is an idiot Apr 13, 17:31
- [deleted] 6
  - and law firms (tax lawyers especially) -- nm - Beaker Apr 13, 17:09 5
    - [deleted] 4
      - ummm don;t tax lawyers make their living based on how complicated tax returns are� -- nm - Beaker Apr 13, 17:12 3
        
        [deleted] 1
        
        see the post right below. Took a second but I got it on my own :) -- nm - Beaker Apr 13, 17:24
        
        ahh, I got where you were going with it. -- nm - Beaker Apr 13, 17:13
What was the total take last year in federal income tax? - Fuzzy Apr 13, 17:06
they can't touch the mortgage interest exemption... it'd be crushing -- nm - stewie Apr 13, 16:53 13
- That's one of the last ones I'd consider removing, It think. - ty97 Apr 13, 16:55 12
  - FWIW most other countries don't have this exemption. Also, the taxpayers that benefit most are the ones with the most expensive houses -- nm - Roger More Apr 13, 16:58 11
    - Though there is a difference between not having it and taking it away. Even if a good idea in the long run, it would have to be done very gradually. -- nm - Dano Apr 13, 17:03 2
      - [deleted]
      - Oh sure - it'd be political suicide. -- nm - Roger More Apr 13, 17:09
    - Thanks for adding this. I don't think it's all that sacrosanct. If you can't afford to buy, don't buy. -- nm - mara Apr 13, 17:02
    - There are limits on it. -- nm - ty97 Apr 13, 17:01 6
      - On interest up to $1 million of debt, according to wiki. I wonder how many people have more than $1 million of debt on their house -- nm - Roger More Apr 13, 17:07 5
        
        I don't know that I disagree with the $1 million number. - ty97 Apr 13, 17:10 4
        
        Yeah - maybe it could be linked to a % of the average house price in the area or something -- nm - Roger More Apr 13, 17:25
        
        Exactly, When a three bedroom, 2 bath house built in the 50's goes for close to 700k in the bay area (albeit this was 6 years ago) you realize - Stephen Apr 13, 17:23 2
        
        Ideally, numbers like this and the AMT should be localized. - ty97 Apr 13, 17:25 1
        
        [deleted]

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Tax simplification has two major barriers that I see.

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