I hate doing tax paper work like everybody but I would rather do it myself than let government do it. When I do it myself I am very careful to make sure I have gotten every possible deduction. If I let the government do it, most likely I will wait until the last day to review it and then I would say 'yeah looks right' without doing due diligence. If the government makes mistake of omitting a deduction or two on people's tax return then people would complain how government is trying to rip them off by deliberately omitting deductions. I also hate the complicated tax code like everybody else but that is a necessary evil I believe. US has large variations in income/wealth and one size doesn't fit all. The fact that tax code is complicated is actually an indication that there are tax breaks available for most people in many forms. US taxes are much lower than European taxes. It is easy to simplify the tax code by taxing everybody 30-40% like European countries. I would rather have a complicated tax code that results in lower taxes than a simple tax code that results in higher taxes.
The complexity of the tax code is completely unrelated to the cost of running your country, which is what taxes have to cover.
Increased complexity doesn't mean lower taxes or higher taxes, in principle, it just means complex taxes.
In practice, it actually leads to higher taxes to pay for an army of people to check the code is being applied correctly.
In Taiwan they have a system where you can choose to do manual deductions (A), if you think that's in your interest. Or you can take (B) 'the average deduction+10%'. Then you have a 1-page declaration of your income, no deductions marked, but they calculate what the guys who use (A) get, take the average, add 10%, then knock that off your tax bill.
No false claims, no evidence to supply, nothing to check, both sides win, each tax official can manage 100x as many Bs as As.
It's a practical example of how simpler tax codes can result in lower taxes by reducing (needlessly) big government.
You can do that in US too. You can take itemized deduction (similar to A you mention) or you can take standard deduction which is flat amount (similar to B). But the US government lets you apply many more deductions after taking either of these and that is where the complexity comes. You can choose to do just itemized or standard deductions in US and not bother about other ways of saving money and then your taxes will be simple like Taiwan. That's your decision.
> But the US government lets you apply many more deductions after taking either of these and that is where the complexity comes.
I feel you've missed my point. Most countries offer the ability to consolidate some deductions into a standard deduction.
But in Taiwan they consolidate ALL the deductions, as far as memory serves; and the way they do it isn't a fixed amount (e.g. 5%) but the sum of what the other people achieve who go the long route, plus a bonus.
So literally it's 1-page 'sign here', or a complex form.
And it's literally a statistically 'guaranteed' win if you make things easy on everyone (average + 10%).
