I think they already do in a sense; that’s the standard deduction. If you want to maximize your returns you might be better off itemizing though, and that option is what makes everything complicated (I suspect they’d have a hard time sending you a bill for everything you itemize… I don’t know that they really know everything you could itemize; I think that really only comes up when it’s suspicious/you get audited).
i.e., if they did that, you’d basically get fewer options, and maybe less money back(?)
87% of people take the standard deduction. Just give people a bill (or I dunno, take out the correct amount to begin with) and allow people to contest or do an itemized deduction if they disagree.
Even when you take the standard deduction, only had one job in one state for the tax year, and have no investments or other income (ie. the only way your taxes could be simpler is if you don’t have any income and someone else pays all your bills), it’s still complicated to file taxes manually. Many other developed countries will automatically calculate the most common scenarios for most taxpayers, and only people with unusual situations have to do any manual calculations (or pay a tax preparer).
Several countries have already figured this out, ot isn’t rocket surgery. The government has a pretty good idea what you owe, and send you a bill. If you want to take another route, you’re free to submit your own taxes, but the vast majority don’t need to do anything like that. There’s no reason we couldn’t use the same system, if it assumes standard deduction that would cover the vast majority of people. Anyone who wants to itemize would be free to, it just wouldn’t be automatic, so essentially, nothing would change for them. Well, almost nothing, the difference is if they take too long they have a safety net standard deduction already filed and done I guess.
I think they already do in a sense; that’s the standard deduction. If you want to maximize your returns you might be better off itemizing though, and that option is what makes everything complicated (I suspect they’d have a hard time sending you a bill for everything you itemize… I don’t know that they really know everything you could itemize; I think that really only comes up when it’s suspicious/you get audited).
i.e., if they did that, you’d basically get fewer options, and maybe less money back(?)
87% of people take the standard deduction. Just give people a bill (or I dunno, take out the correct amount to begin with) and allow people to contest or do an itemized deduction if they disagree.
Even when you take the standard deduction, only had one job in one state for the tax year, and have no investments or other income (ie. the only way your taxes could be simpler is if you don’t have any income and someone else pays all your bills), it’s still complicated to file taxes manually. Many other developed countries will automatically calculate the most common scenarios for most taxpayers, and only people with unusual situations have to do any manual calculations (or pay a tax preparer).
Several countries have already figured this out, ot isn’t rocket surgery. The government has a pretty good idea what you owe, and send you a bill. If you want to take another route, you’re free to submit your own taxes, but the vast majority don’t need to do anything like that. There’s no reason we couldn’t use the same system, if it assumes standard deduction that would cover the vast majority of people. Anyone who wants to itemize would be free to, it just wouldn’t be automatic, so essentially, nothing would change for them. Well, almost nothing, the difference is if they take too long they have a safety net standard deduction already filed and done I guess.