It’s about that season, the W2 came in yesterday. Chatting with a buddy, i started to think why the taxes aren’t set up more like invoices.
i get an invoice, broke down into different costs, labor x, materials x, x, and x, shipping x, total XXXX. So why are the taxes so brutally complicated? Why can’t it simply be like so:
Under different tax brackets
$55k to $60k - for the past year
- $10,000 you owe in tax for 08
- +$1200 for social security
- +$1000 for what ever
-
- $1,000 for each kid
-
- $xxx interest on house
- Total = $xxxx.xx
You pay the total in one lump sum by April 15th, or divide it out into 10 or 11 months and pay that way. Either way, there’s no tax return to file, merely an invoice to pay.
I know the EZ forms are essentially this way, but the wording, the instruction books tax codes etc are damn near impossible for the average joe to nail down. Really, they’ve way over complicated this entire thing, you made this much, you pay this much based on your life. Pay as you may, I suspect lots of folks would do the lump sum shot.
There would be no taxing the return, no massive code books. You simply go to your bracket, and add and subtract what is owed.
I know this is along way from perfect. My wife is the accountant not me, but even the W2 was about as clear as mud with regards to the wording on the back.
ok, tear me apart…