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What is an absurdity that has been normalized by society? (midwest.social)
submitted 3 years ago by to c/asklemmy@lemmy.ml
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[โ€“] 1 point 3 years ago* (3 children)

That's absolutely not the case. They lobby to prevent the IRS making their own version of TurboTax, not lobbying to make the tax code more complex. Taxes are complex because we have little real oversight but a lot of deductions and credits. The IRS literally cannot track everything they offer deductions for, so it goes largely on the honor system until something seems fishy.

If you have a house, you have deductions. If you added solar to your house, you have deductions. If you bought an electric car or a hybrid, you had deductions for a while there. If you rent you have deductions in some states. You have to list your dependents for credits.

The IRS is incapable of tracking all of this.

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  • [โ€“] 0 points 3 years ago (2 children)

    But like I feel like this system of deduction taxes is more difficult than any other country and it reinforces the need for americans to use software or an accountant. Am I wrong? Are other countries putting up with this shit? The biden admin is the first in my lifetime to give us credits rather than a rebate or deductible.

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  • [โ€“] 3 points 3 years ago (1 child)

    That's... Not at all true. There has been a child tax credit for decades. EV credits have existed for quite some time.

    And yeah, other countries have some, but iirc they do it because they already track everything for VAT purposes, so it's just an extension of that.

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  • [โ€“] 0 points 3 years ago

    I should have used more precise language. There's so much jargon! https://en.m.wikipedia.org/wiki/Child_tax_credit_(United_States) To my understanding this is the first time it's ever been paid directly "in advance" rather than served as a credit against your tax payments, awarding money at the end of the year - or even worse when it was non-refundable. This in advance, far higher amount, fully refundable child tax credit is fucking radical compared to what we had and what we're going back to.

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