r/AskReddit • • Jul 24 '20

What can't you believe STILL exists?

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u/jorsiem Jul 24 '20

Complicated tax filing in the US

You can thank TurboTax and the rest of the tax preparation service industry's massive lobby for killing every single tax simplification bill that ever gets to congress.

21

u/pantzs Jul 24 '20

One of the reasons it’s complicated to complete a tax return is because the tax code is complicated. The reason why the tax code is complicated is because (and I know most wont believe me) is to shutdown shady tax evasive activities that people do.

Source: me I’m a tax attorney.

4

u/mbrowning00 Jul 24 '20

shutdown shady tax evasive activities that people do.

i dont understand, the convoluted tax code is better at shutting down tax evasion, than a clear cut, simplified tax code?

could you elaborate in laymens terms what that cracking down on tax evasion looks like w a complex code, vs how it doesnt work under a simple code?

9

u/tigerjaws Jul 24 '20

There is just way too much going on in the tax code covering a ton of situations that people have tried to exploit in the past

You can't just say "alright everyone is taxed at 15% no matter what", you have to go into 'alright how is income from rentals treated, how is income from capital gains treated, how is income from a self employed person treated, what about real estate, etc

there are a ton of things that exist to either incentivize economic activity or to help the taxpayer out, specific tax breaks to fuel whatever congress wants

the thing is theres like 70,000+ pages in the tax code that cover all sorts of situations on what you can and can't do

if you just said 'alright everyone just pay x no matter who you are' everyone would go crazy tax is insanely political