[HN Gopher] US IRS to hire 30k staff over two years as it deploy...
       ___________________________________________________________________
        
       US IRS to hire 30k staff over two years as it deploys $80B in new
       funding
        
       Author : LinuxBender
       Score  : 80 points
       Date   : 2023-04-06 20:14 UTC (2 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | Yoofie wrote:
       | Questions: Hiring 30k over two years is alot of people. Where do
       | these presumably qualified people come from? Are they MBA types?
       | Finance majors? Do they take people off the street and train
       | them? If so, how do we know these new people will be a net
       | positive and not just administrative bloat? The article says they
       | will hire more data scientists, but how many "data scientists"
       | does the US pump out each year, and what does it take to convince
       | them to work for the IRS?
       | 
       | I have so many questions on how the mechanics of an
       | organizational change like this works.
        
       | svggrfgovgf wrote:
       | I think that this new spending and new staff will be used to
       | further weaponize the IRS against political opponents. We already
       | saw the Obama administration use the IRS to suppress political
       | opponents without any real consequences.
        
       | exabrial wrote:
       | I work for free more than 20% of the year to pay for stuff that
       | costs about 15x the price it should. The difference of the money
       | goes to golf buddies of the Pelosi's and other corrupt
       | politicians.
       | 
       | That $80b in funding will benefit literally no-one except a
       | select few individuals.
        
       | apocalyptic0n3 wrote:
       | This is great news. I know an IRS engineer who just retired. He
       | was managing a critical system at the time of retirement and the
       | horror stories I've heard from him about it makes it clear they
       | need to bring in people to not just improve auditing, but also
       | modernize their infrastructure. Much of it is stuck in the 80s
       | (or worse). Hopefully they overhaul existing systems and
       | implement new ones to go along with hiring "more data scientists
       | than they ever have"
        
       | slackfan wrote:
       | [flagged]
        
         | encryptluks2 wrote:
         | [dead]
        
         | yoyohello13 wrote:
         | I don't understand this argument. How do we pay for
         | infrastructure, or any public service? Privatization? Private
         | companies have proven many times that they cannot be trusted to
         | work in the best interest of people. Just look at any company
         | town.
        
         | whamlastxmas wrote:
         | If taxation is theft then anything you've ever benefited from
         | that was accomplished with tax dollars is also theft
        
           | YourDadVPN wrote:
           | If he didn't steal it himself, then it was just handling
           | stolen goods, technically.
        
         | exabrial wrote:
         | As a society, at some point, we're going to have to move past
         | the ancient and barbaric practice if we want to advance.
        
           | [deleted]
        
         | slivanes wrote:
         | Then using public infrastructure is freeloading.
        
       | NickC25 wrote:
       | Good. This should come with the caveat that they are going after
       | ultra-high net worth individuals.
       | 
       | An agent spending a day going through the returns of some random
       | person who makes 40-60k to see that their return was off by $30
       | is an absolute waste of time and resources.
       | 
       | The IRS needs to fry the biggest fish for a change, instead of
       | ignoring them or being too scared to face a well-funded legal
       | team.
        
         | tananaev wrote:
         | There has to be random enforcement across the board. If people
         | with lower incomes know they are never audited, it will
         | encourage more people to under-report more. Obviously each
         | individual audit won't be financially profitable for IRS, but
         | the fact that it is enforced will send a message to millions of
         | people that under-reporting a few hundred bucks is not worth it
         | and it's better to pay the taxes on it.
        
         | galkk wrote:
         | They should go for everyone, ranked by income.
         | 
         | One year I got a paper mail from IRS where they said that there
         | were potentially unpaid taxes, but it could be that you haven't
         | filed Schedule D form for RSU. I was very pleased with it - it
         | clearly stated what I didn't do, what I should do (file needed
         | forms), how to contact etc.
         | 
         | I updated everything providing what was needed and sent it,
         | everything was ok.
         | 
         | Comparing to the messy interactions with tax guys that I had
         | long time ago in my former home country (with hints of needs of
         | bribes), when I was leaving it, I'll rather have to deal with
         | IRS any day.
        
           | 2OEH8eoCRo0 wrote:
           | > They should go for everyone, ranked by income.
           | 
           | The IRS is about to have the world's largest Kanban board.
        
         | mikeyouse wrote:
         | There's plenty of low-income fraud that they should be tracking
         | down as well. A politician local to me filed for PPP loans for
         | multiple different LLCs he managed that had no trace of
         | employees and got like $150k from the Feds. Would love for that
         | to be looked into, but the backlog is real.
        
           | pwinnski wrote:
           | That's fraud, but outside the purview of the IRS. The program
           | was administered by the SBA.
        
             | mikeyouse wrote:
             | It's my understanding that the IRS-CI group is
             | investigating it; https://www.irs.gov/newsroom/irs-
             | criminal-investigation-ci-p...
        
           | toomuchtodo wrote:
           | I would strongly encourage you to report this potential fraud
           | for investigation. It will be triaged in a timely manner.
           | 
           | https://www.sba.gov/partners/contracting-
           | officials/contract-...
        
         | ortusdux wrote:
         | "The new IRS chief, a former management consultant who briefly
         | ran the agency on an acting basis in 2013, said that he would
         | enforce Treasury Secretary Janet Yellen's pledge to not
         | increase historical audit rates for Americans earning under
         | $400,000.
         | 
         | The final 2017 audit rate for earners between $200,000 and
         | $500,000 0.4%, far below the 2.3% for that bracket in 2010,
         | according to IRS data."
        
           | notch898a wrote:
           | Didn't the legislature try to introduce a bill to prevent
           | using the new agents/funding against lower earners, and it
           | flopped? So it turns out all along no one actually wants to
           | keep anyone accountable to such "promises."
           | 
           | https://www.senate.gov/legislative/LIS/roll_call_votes/vote1.
           | ..                 Statement of Purpose: To prevent the use
           | of additional Internal Revenue Service Funds from being used
           | for audits of taxpayers with taxable incomes below $400,000
           | in order to protect low- and middle-income earning American
           | taxpayers from an onslaught of audits from an army of new
           | Internal Revenue Service auditors funded by an unprecedented,
           | nearly $80.000.000.000, infusion of new funds.
           | Vote Result: Amendment Rejected
        
             | JumpCrisscross wrote:
             | > _legislature try to introduce a bill to prevent using the
             | new agents /funding against lower earners_
             | 
             | Money is fungible. This was a messaging bill. If they were
             | serious, they'd create an independently-funded agency
             | within the IRS with the sole mandate of going after high
             | earners.
        
               | notch898a wrote:
               | If the bill was a message, so was the response. "Fuck
               | you, we'd rather not be hindered by such promises."
               | 
               | -----------------------------------
               | 
               | RE: below [due to timeout]
               | 
               | >The original bill already passed.
               | factcheck:  false.  Original bill passed almost 12 hours
               | later on the same day[0] [1].  The (above) amendment was
               | voted on in the early morning, with the unamended
               | increase passing in the afternoon.
               | 
               | >Congress has more important things to do.
               | factcheck:  false.  All 100 senators voted on the floor
               | for a full vote on the amendment.  None found they had
               | something more important to do that would cause them not
               | to cast a vote.
               | 
               | >The executive has stated its position.
               | factcheck: True.  Either congress ignored the position,
               | or they followed the privately endorsed position rather
               | than the publicly endorsed one.            [0] https://ww
               | w.senate.gov/legislative/LIS/roll_call_votes/vote1172/vot
               | e_117_2_00325.htm            [1] https://www.senate.gov/l
               | egislative/LIS/roll_call_votes/vote1172/vote_117_2_00296.
               | htm
        
               | JumpCrisscross wrote:
               | > _so was the response_
               | 
               | Not really? The original bill already passed. The
               | executive has stated its position. Congress has more
               | important things to do.
        
             | jksmith wrote:
             | So less than 400k is designated as high net worth? 200k
             | will be the new threshold at some point.
        
             | ortusdux wrote:
             | I don't take the legislature's failure to pass a bill as a
             | sign of anything other than their general incompetence.
        
         | LanceH wrote:
         | The ultra-rich are largely law-abiding and have the paperwork
         | to prove it.
         | 
         | What should be concerning is the new reporting requirements on
         | virtually any $600 transaction combined with 30k more IRS
         | staff.
        
           | jltsiren wrote:
           | "Law-abiding" is not a binary concept. There are some
           | activities that clearly abide by the law, and there are some
           | activities that clearly break the law. But there is also a
           | wide gray between the extremes, where it can be difficult to
           | determine what the law actually is without going to court.
           | 
           | The best practices for tax planning deliberately go into the
           | gray area, because there is money to be made in the expected
           | case. Even if you are audited and found breaking the law, the
           | consequences are rarely that severe. But the same reasons
           | that make going into the gray zone profitable in tax planning
           | also make it profitable to audit people who practice tax
           | planning.
        
           | andrepd wrote:
           | Even before tax evasion, the wealthiest 0.1% pay
           | proportionally less taxes than everyone else.
        
           | pastor_bob wrote:
           | >The ultra-rich are largely law-abiding and have the
           | paperwork to prove it.
           | 
           | Just because they have receipts of their expensed 'business'
           | dinners and 'client' trips to Disney World doesn't mean
           | they're not fraudulent
        
           | EMM_386 wrote:
           | > The ultra-rich are largely law-abiding and have the
           | paperwork to prove it.
           | 
           | Oh really?
           | 
           | "Credit Suisse, the collapsed Swiss bank taken over by UBS
           | Group in a hastily arranged bailout earlier this month, may
           | bring with it a fresh set of regulatory and legal problems
           | for its new owner.
           | 
           | For years, the bank has provided a safe haven for wealthy
           | American clients to hide assets from the IRS -- even after it
           | was caught and prosecuted for doing the same thing more than
           | a decade ago"
           | 
           | Many will take whatever opportunity they can get. Whether its
           | complex offshore structures or moving it to banks that will
           | greet you with a wink and a nod. As long as it doesn't go to
           | the IRS.
           | 
           | I'm not saying all wealthy individuals do this, or even most.
           | But the amount of money that is intentionally hidden from the
           | IRS is incredibly substantial. They have done the studies.
        
           | mikeyouse wrote:
           | People have a really simplistic view of what wealthy
           | "compliant" tax returns look like. There is a massive amount
           | of tax fraud at the wealthiest levels -- but since the IRS
           | rarely prosecutes, people just assume the returns are merely
           | avoidance instead of evasion.
           | 
           | Look at what's come out from Trump's historical tax returns
           | -- literally tens (if not hundreds?) of millions of dollars
           | in tax fraud that was just never prosecuted. Had the
           | authorities looked before the statute of limitations had
           | elapsed, there would have likely been criminal charges.
           | 
           | https://www.nytimes.com/interactive/2018/10/02/us/politics/d.
           | ..
           | 
           | https://www.propublica.org/article/trump-inc-podcast-
           | never-b...
           | 
           | This isn't "some people say" territory - it's just blatant
           | fraud that went unprosecuted and it happens all the time.
        
             | themagician wrote:
             | The IRS rarely prosecutes high earners because it's
             | expensive and it's possible they fail.
             | 
             | Once you get out of simple W2 and 1099 income things get
             | real complicated real fast. So complicated the IRS can get
             | it wrong themselves. The more complicated the return, the
             | more subjective they become. When the rules are so complex
             | or the terms so vague that things can be left up to
             | interpretation or they do not capture all edge cases it
             | becomes very easy to end up in a scenario where you have to
             | prove intent to commit fraud if you really want to
             | prosecute.
             | 
             | There is no doubt that the IRS leaves plenty of money on
             | the table by not pursuing more high earners, but who wants
             | to do the hard work when the easy work is just to compare
             | reported W2 and 1099 income statements with returns?
             | 
             | If we wanted to get serious about going after high earners
             | we would simplify the tax code. We'd get rid of certain
             | carry overs all together. At some point we may even tax
             | revenue instead of profits. That might sound wildly "anti-
             | capitalist" but it's the only way to eliminate the
             | ambiguity. We could create different incentives that
             | reverse the burden.
             | 
             | I can think of a funny example I saw the other day where
             | some dope was telling people they can deduct their dog as a
             | business expense if they work from home because the dog is
             | a "guard dog". The thing is you actually can do this. If
             | you do this with any old dog it obviously would not hold
             | up... but where is the line? How much training does a dog
             | need to be considered a guard dog? How many hours a day is
             | the dog actually guarding? You going to interview the dog?
             | What if the dog dies or runs away? The IRS is not going to
             | scrutinize every dog. There are a ridiculous amount of
             | things just like this that people write off as expenses. If
             | you want to successfully prosecute you've got to really
             | make the case that it was intentional--like that there was
             | no dog at all. Otherwise it's just difficult, and there's
             | so much lower hanging fruit. You want to go back and forth
             | over a dog with or just go after this person who failed to
             | report a PayPal transaction? The latter is so much easier.
             | Guaranteed win.
        
           | NickC25 wrote:
           | They are "largely law-abiding" because collectively, they've
           | bought the ability to call their actions law-abiding.
           | 
           | Warren Buffet pays a smaller % of his income in tax than he
           | secretary does, and he's said that himself. You know how
           | that's possible? Because Buffet and people like him bought
           | off the government ages ago and, collectively, said to the
           | IRS "we're going to tell you what we are going to pay, and
           | you're going to deal with it, OK?", and continually lobby
           | congress and say that whatever minuscule amount they actually
           | do pay is WAY too high and needs to be cut, and cut again.
        
         | badlucklottery wrote:
         | > This should come with the caveat that they are going after
         | ultra-high net worth individuals.
         | 
         | It sounds like that's the plan:
         | 
         | "It also aims to help close the "tax gap" between taxes owed
         | and those paid, estimated by Treasury at some $600 billion a
         | year, by focusing new audits on the wealthiest Americans."
         | 
         | Hopefully we can avoid electing clowns long enough to see this
         | bear fruit.
        
         | CamperBob2 wrote:
         | _This should come with the caveat that they are going after
         | ultra-high net worth individuals._
         | 
         | Note that pretty much everything the Biden administration has
         | done amounts to soaking the middle class. $600 reporting
         | threshold, anyone?
        
           | thebradbain wrote:
           | The $600 reporting threshold has always been there (though I
           | agree, it should be retroactively pinned to CPI from when it
           | was introduced). Most banks through Zelle previously would
           | automatically submit all transaction history to the IRS
           | anyways; After all, the IRS can absolutely track how much
           | money is entering/leaving your account on a given month,
           | which is how they'd flag you for an audit if things don't add
           | up to what you reported.
           | 
           | The only real "change" was that now Venmo/Cash App will be
           | required to, too-- and even that got delayed.
        
             | notch898a wrote:
             | That threshold has not always been there. Used to be 20k,
             | but they had to lower it to catch the billionaires.
             | 
             | https://www.wolterskluwer.com/en/expert-insights/irs-
             | delays-...
        
               | lilsoso wrote:
               | Does this cover most payments over $600? They're now
               | mostly all recorded? I don't understand the exceptions.
               | 
               | So it applies to digital payment methods like Paypal, to
               | payment networks like Western Union, but also to any
               | credit card transaction over $600?
               | 
               | edit: I think I was thinking of the payments in the wrong
               | direction. The 1099-K applies primarily to the receiving
               | party?
        
         | madengr wrote:
         | [dead]
        
         | [deleted]
        
         | CrunchyJams wrote:
         | I know this sounds crazy, but how about we apply the law
         | equally to everyone? I have a difficult time seeing how
         | targeting or generalizing any group of people rather than
         | individual likelihood of tax evasion is an appropriate
         | application of resources.
        
           | dougmwne wrote:
           | Because it's unprofitable. Think of the IRS like the sales
           | staff of a business. Taxes are the revenues. No business
           | would be rewarded for wasting marketing and sales budget on
           | chasing customers who have no ability to pay.
           | 
           | Sure you could go after a low income tax cheat, but you end
           | up just putting them in debt if they don't actually have the
           | ability to pay you.
           | 
           | This is all about justice vs. profitability.
        
             | CrunchyJams wrote:
             | Except it's not a business. It's the government and it's
             | job is to apply the law in a country founded on the idea of
             | equality.
             | 
             | Should police only pull over people in luxury cars because
             | they're more likely to be able to pay a speeding ticket?
        
               | chowchowchow wrote:
               | The better analogy is should police pull over someone
               | going 120mph or going 80mph if they have to choose.
               | 
               | Clear answer IMO. Similarly should the government
               | prioritize more serious offenses over lesser? It's a
               | bigger crime to evade $1,000,000 in taxes than it is to
               | evade a $1,000 tax bill.
        
               | tedunangst wrote:
               | The job of the revenue service is to collect revenue.
        
           | oivey wrote:
           | Because stealing a car isn't equal to stealing a candy bar.
           | The more money you make the greater the possible size of the
           | evasion.
        
           | pastor_bob wrote:
           | It's far easier for a business to evade paying taxes. Half
           | the businesses I visit in NYC admit they want cash so they
           | don't have to report it on their taxes.
        
           | sebzim4500 wrote:
           | Currently they prioritize going after people on low to middle
           | income, so if there is additional funding it should go
           | towards the people currently being ignored.
        
             | s1artibartfast wrote:
             | you see that claim, but the caviat is that many of the
             | types of fruad/errors made by low to middle income are
             | easily detected.
             | 
             | You can easily run a program to detect people claiming the
             | same dependents.
        
               | yamtaddle wrote:
               | Yeah, last time this topic came up, I seem to recall that
               | it turned out the vast majority of "audits" claimed to be
               | targeted at the lower-classes were automated, mostly
               | intended to catch common "whoopsies", and usually
               | resulted in a pretty chill "yo, we think you owe X for
               | reason Y, send us a check if you agree, or else perform
               | the following steps to dispute" letters, not, like, thugs
               | knocking down someone's door and demanding to comb
               | through all their records from the last seven years.
               | 
               | ... while audits for rich folks required heavy human
               | involvement right from the beginning, so _of course_ the
               | numbers are skewed such that it looks like they are
               | targeting the middle and lower classes, if you treat both
               | types of audit as identical.
        
         | sarcasmatwork wrote:
         | >Good. This should come with the caveat that they are going
         | after ultra-high net worth individuals.
         | 
         | If people work hard and make alot of money you want them
         | targeted? Wow! If only I could waste billions of our taxes
         | without accountability.
         | 
         | Those ultra rich hire people, and have lot's of write off's and
         | know the system. Tax code is difficult on purpose.
         | 
         | There is a history of IRS targeting certain groups, while
         | ignoring the others. If you think they wont target people that
         | are helpless and can't fight you've got to wake up.
         | 
         | Not too long ago: "Internal Revenue Service says it gave extra
         | scrutiny to organizations with the names "Tea Party" or
         | "Patriot" seeking tax-exempt status.
         | 
         | No criminal charges were ever filed against IRS officials.
        
           | Spooky23 wrote:
           | No charges were filed because they didn't commit a crime.
           | 
           | Targeting some dopes creating a 501 as a "Tea Party" group is
           | called targeting the low hanging fruit. So is aggressively
           | enforcement of credits for non-custodial parents, etc.
           | 
           | Meanwhile, those hard working ultra-rich real estate
           | developers committing various frauds with self-dealing, fake
           | appraisals, etc walk away with millions of dollars and pay
           | little or nothing.
        
           | ceejayoz wrote:
           | > Not too long ago: "Internal Revenue Service says it gave
           | extra scrutiny to organizations with the names "Tea Party" or
           | "Patriot" seeking tax-exempt status.
           | 
           | When they investigated, "progressive" and "occupy" (as in
           | Occupy Wall Street) were also on the scrutiny list. They were
           | (correctly) looking for political orgs masquerading as
           | "social welfare" orgs to avoid disclosing donors.
           | 
           | (Also on the list of terms: "open source software", "medical
           | marijuana", etc.)
           | 
           | https://web.archive.org/web/20131207123209/https://www.bloom.
           | ..
        
           | yamtaddle wrote:
           | > If people work hard and make alot of money you want them
           | targeted? Wow! If only I could waste billions of our taxes
           | without accountability.
           | 
           | No, just the "make a lot of money" part. How hard they worked
           | doesn't matter.
        
         | slackfan wrote:
         | Ahaha, your naivete is so cute.
        
         | s1artibartfast wrote:
         | To the contrary, I think they should spend their time there is
         | the best return on investment.
         | 
         | The number one priority of the IRS I should be recovering
         | funds, not ideological Warfare.
         | 
         | Recovering funds should not be political, and to make it so is
         | a race to the bottom. Once you start targeting specific groups,
         | you normalize all kinds of bad behavior.
        
       | jwie wrote:
       | The fact that I have to file the return is itself part of the
       | problem. This process should be "irs gives you a refund or tells
       | you what you owe and then you either dispute it or take it". The
       | audit practice invites mischief into a system where someone makes
       | a judgement about when to audit, and the process is the
       | punishment.
       | 
       | Just tell me what I owe, and if I feel like it I can dispute it.
       | If they can validate a tax return they obviously know what would
       | be correct.
        
         | stetrain wrote:
         | Absolutely, but to accomplish that you'd need enough political
         | will to combat the lobbying from TurboTax and the other tax
         | filing businesses.
        
           | abletonlive wrote:
           | It's not like turbotax is some monopoly on tax filing
           | software. There are at least a couple free tax filing options
           | now available. That should in theory mean that turbotax is
           | losing it's political power as time goes on.
        
         | mixmastamyk wrote:
         | This comment is on the right track, but is inadequate. It
         | invites the typical response that it "can't be done," because
         | X, Y, Z.
         | 
         | The truth is closer to yes. Yes, there could be (and is in
         | civilized countries) a web based form that lists everything the
         | government expects to apply this year. And it could be quite
         | accurate. Then you spend fifteen minutes (typically) entering
         | in your deductions or any missing data. Does the math. Reduces
         | the manual process from a week to under an hour.
         | 
         | (I understand that third-party software does reduce that time
         | as well, but shouldn't need to exist.)
         | 
         | So yes, it can be done, because I've done it when I had a
         | contract in another country.
        
         | jksmith wrote:
         | That's what they do anyway if you don't file. Yeah, mandating
         | filing is increasingly becoming a control mechanism as filing's
         | only purpose.
        
           | stetrain wrote:
           | If you mean control by corporations who make money on the
           | current process then yes.
           | 
           | https://www.propublica.org/article/inside-
           | turbotax-20-year-f...
           | 
           | https://www.nbcnews.com/news/ncna736386
        
         | shrimpx wrote:
         | IRS has happily kept thousands of dollars of my money when I
         | filed incorrectly. A few years later I went to the IRS office
         | for an unrelated matter and I asked the agent "can you look up
         | year XXXX and see if I was owed a refund?" Agent looks up and
         | says yup, you were owed a large refund. Too late to get it back
         | now, but we strongly encourage you to correctly refile your
         | taxes for that year.
         | 
         | So they had done my taxes and knew they owed me money and,
         | basically, stole my money. If I owed them money they would have
         | immediately hit me with a bill or an audit. And on top of it
         | they wanted me to refile my taxes "correctly" after they had
         | already done my taxes.
         | 
         | This "do your thing and we'll do it, too, and we'll see if you
         | got it wrong" is one of the most stressful aspects of American
         | bureaucracy.
        
           | clumsysmurf wrote:
           | How long ago was the missed year? I missed a filing from 3
           | years prior, in which I was owned money, and got it back no
           | problem. Also since I do my own taxes, sometimes I make
           | mistakes, and they correct them and I'm pleasantly surprised
           | by a larger refund.
        
             | shrimpx wrote:
             | It was 4 years. I was told I could not get the money back.
        
           | [deleted]
        
         | beebmam wrote:
         | Are there any alternative tax mechanisms to income taxes that
         | you'd support? I've heard many times that VAT or consumption
         | taxes are far more efficient than income taxes. Seems like
         | they're also easier to enforce (except in regions with
         | significant black markets). I've also heard that taxing land &
         | non-invested property is a good idea, too.
        
         | dpifke wrote:
         | For some reasons why this won't work, might I suggest you skim
         | through the other 1,526 comments on HN that have made the exact
         | same suggestion:
         | 
         | https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu...
        
         | synergy20 wrote:
         | what about the old plan as just-the-sales-
         | tax(local+state+federal), so nobody needs to file anything, and
         | no need of IRS at all.                   * flat-tax-rate as the
         | default,itemized if you prefer:             * charge less for
         | regular food, educational and medical expenses             *
         | charge a little more for travel and non-essential leisure
         | expenses             * charge even more for luxury expenses
         | * charge nothing before your spend reach a certain point, e.g.
         | $5000
         | 
         | Someone has to figure out how to design the tax rate, point is
         | that, we no longer need the IRS and annual or quarterly tax
         | reports.
         | 
         | There are a few states did well with no income tax(just sales
         | tax and property tax), the nation could do the same, don't
         | forget to short Intuit if this happens.
        
           | yamtaddle wrote:
           | > so nobody needs to file anything
           | 
           | Most of us would need to do very little filing-related work
           | every year if anti-tax politicians who think their crusade is
           | worth wasting hundreds of person-lifetimes of hours every
           | single year, and tax prep companies' lobbyists (probably
           | with, ah, _some overlap_ between these two causes) would stop
           | standing in the way, no major overhaul of the tax code
           | required.
        
           | petersellers wrote:
           | There have been a number of studies done that demonstrate
           | that a consumption tax (which is effectively what this is) is
           | considered to be regressive because they disproportionately
           | affect poor people.
           | 
           | I'm all for simplifying the tax code (e.g. eliminating many
           | deductions) as long as we also eliminate loopholes that rich
           | people often use to avoid paying taxes on their income.
        
           | ebiester wrote:
           | It disproportionately taxes poor people over rich people.
           | 
           | Also, how do you report how much you've spent to the IRS?
           | That seems even harder. Some people have suggested a
           | "prebate" of a payment that people get that helps with their
           | first part of the sales tax, but that breaks down after a
           | while.
           | 
           | There are also the same problems of "under the table"
           | behavior.
        
             | kcplate wrote:
             | >It disproportionately taxes poor people over rich people.
             | 
             | I always hear this said about national sales taxes, but it
             | just doesn't really jive with me as valid. It really seems
             | to make the assumption that consumption doesn't actually
             | increase based upon how wealthy you are. When it _obviously
             | does_. I don't know many poor folks buying super cars,
             | yachts, airplanes, and multimillion dollar homes. Yet I
             | know a few wealthy folks with multiple of each.
        
               | HeyLaughingBoy wrote:
               | If I'm wealthy, it's most likely that I own a business.
               | If I have a business, then _it_ will have bought that
               | airplane, yacht or car all as tax-deductible purchases.
               | Business then lets me use those at its discretion. My
               | personal car can be an  '87 Chevette.
               | 
               | Best example I'm personally familiar with is the
               | carpenter whose Corvette was a company car.
        
               | kcplate wrote:
               | All of those things are still purchased though, whether
               | it's a company or an individual. Personally I thought the
               | purpose of taxes was to provide the government its
               | funding, not punish.
        
               | shagmin wrote:
               | The thing is poor people have to spend all their income,
               | wealthy people don't. So poor people have all their
               | income taxed, while wealthy people surely aren't spending
               | their last dollar on yachts for the most part. Wealthy
               | people have lots of leftover income to invest and make
               | yet even more money instead. At least with an income tax
               | you can ensure no one pays taxes on their first $x and
               | such.
        
               | kcplate wrote:
               | Still doesn't jive. Taxes are there to fund government,
               | not punish success. Whether or not you have a large
               | income or a small one, your consumption is what it is and
               | to a degree can be controlled.
        
         | cjensen wrote:
         | This is a good first start, but won't work for everyone. E.g.
         | we got a new roof with solar. The solar is tax deductible. But
         | is the roof? My options are (a) no (b) the portion with solar
         | on top (c) all. Asking around, different people have taken
         | different options, and no option is un-taken.
         | 
         | Option (c) will probably never get audited and we all know it.
         | I won't be taking it.
        
           | sys_64738 wrote:
           | Solar power shouldn't be tax deductible. This is another part
           | of the problem.
        
             | greedo wrote:
             | He was just illustrating the complexity. The tax code has
             | tons of incentives for every Congresscritter's pet project.
        
           | Arborealist wrote:
           | They can generate 95% of returns completely accurately. For
           | people with advanced situations they can feel free to file
           | their own correct copy or pay an accountant.
           | 
           | People wanting to deduct their charitable contributions
           | should have to work harder to do that. I shouldn't be
           | inconvenienced because of that.
           | 
           | Of course if they did that you wouldn't need 80K new feds,
           | and since they tend to vote lockstep for more endless
           | government, well it's quite convenient isn't it?
        
         | thephyber wrote:
         | The US government is great as building Dark Patterns in their
         | benefits programs.
         | 
         | There is one major party that thinks government doesn't and
         | can't work well, so it's no wonder that lots of the
         | stakeholders design systems that frustrate users.
        
       | Syonyk wrote:
       | I don't suppose any of that staff will be able to get around to
       | what most other countries do with taxes, which can be summed up
       | as "This is what we know about you, is it correct? If not, please
       | correct it."
       | 
       | As opposed to the US, "Tell me what I already know, and if it
       | doesn't match, we'll make your life hell for an indeterminate
       | period of time."
        
         | dfxm12 wrote:
         | No. TurboTax, et al. saw to that.
        
           | sowbug wrote:
           | Some light reading on the subject:
           | https://www.opensecrets.org/news/2023/02/turbotax-parent-
           | com...
        
           | Syonyk wrote:
           | I'm aware, this is why I pay someone local to do my taxes,
           | instead of using TurboTax. They pay for prep software, but
           | it's not TurboTax (Drake something or another).
        
       | bigmattystyles wrote:
       | I listen to right wing (AM) radio on my way to work. (It works
       | better than coffee I swear) - they're freaking out, or rather,
       | trying to freak out their listeners about this. It's funny
       | because it seems like a third of their ads are for listeners who
       | are being audited or owe taxes. I guess being patriotic is
       | limited to cheering on violence but not paying their share.
        
         | Spooky23 wrote:
         | Those same listeners took the advice a few years ago and were
         | protecting freedom by buying shelf Nevada corporations and
         | rolling 401ks into "Gold IRAs"
         | 
         | That stuff targets old people and people like tradesmen who own
         | their own businesses, but are kinda dumb about business. Some
         | of the ads are fake as well, bought by dark money orgs.
        
         | helsinki wrote:
         | It is our civic duty, as Americans, to pay as few taxes as
         | possible.
        
       | bwb wrote:
       | Good, higher more!
        
         | nilespotter wrote:
         | [dead]
        
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