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CA State Offers To Prepare Simple Tax Returns
Makarand writes "California is ready to roll out a program for taxpayers where the
state will
offer to fill out their tax forms for them if they are simple enough. Taxpayers
will merely have to go online, download and review the completed forms prepared
for them and confirm their return. This program is supposed to save money
for the state, reduce tax related headaches for many and bring into the
tax system those who are not paying any taxes currently.
The state will take information it already receives on W-2 wage statements,
put it in the right boxes on the tax return, and do the math."
The tax system is too complicated... we need the Fair Tax.
Simply put, the FairTax replaces the way we're currently taxed - based on our annual income - with a tax on goods and services. The FairTax is a voluntary "consumption" tax: the more you buy, the more you pay in taxes, the less you buy, the less you pay in taxes.
It's simple.
Everyone pays their fair share of taxes, and with the FairTax rebate, spending up to the poverty level is tax free. The Federal government is fully funded, including Social Security and Medicare, and you don't need an expert to determine your Federal taxes.
It's simple.
Read the FAQs
What could possiblie go wrong?
(How about reducing spending so you don't need to collect as much income tax? They currently take FIVE HUNDRED DOLLARS from me each month in state income taxes.)
Ironically, the word ironically is often used incorrectly.
This is somewhat similar to the UK self assessment system. No such thing as state taxes in the UK, so it's all just one system.
Many self employed people simply scribble in their earnings, their losses, and their profit.. and if they send it back by September (rather than January) the tax office will work out the tax on your behalf. If your profit is over a certain amount, you also have to fill out a few more boxes explaining what sorts of expenses you had, but it's pretty simple. You can even do it online.
How is it that every time I see some unique law or way of governing it's in California? I'm genuinely interested. Do they have a fundamentally different way of thinking? Can someone who lives there comment?
Your not only sending it to them, they already have it. Every W-2, every 1099, every piece of paper you receive, the IRS has already been sent that info. When you report, they simply match up your info to that which your employer or bank or whoever already sent in. If there is a discrepancy, the computer spits out an automated request for clarification which is mailed to you. This is what makes it harder for the average individual to cheat.
When you own your own business, and generate these forms yourself, that is where the real opportunity for cheating is.
Aww c'mon, PornMaster. You gotta know this is just the first step. In a few years CA will come out and say, "Since you now trust our numbers we won't require you to check the website and give your approval. It'll be even more simple. We'll just figure out how much you owe us and send you the bill. If you want to dispute it after the fact we'll have another website you can go to."
That's step #2. The IRS is pretty firm when you goof? We'll see how easy it is to get money back when they goof.
I'm not sure about the crime rate, but the public schools are VASTLY influenced by where you live. Georgia is rated one of the worst in the country mainly because of PSAT scores. It's average score is vastly reduced due to the percentage of kids who take it. Almost all students in the state take it, compared to most other states which have very low percentages due to the Georgia government paying for the PSATs for their students.
I agree 100% that the tax code needs to be simplified. Off the top of my head I can think of three problems, though I'm sure there are many more.
1) What about Roth IRAs, savings accounts, investments, etc where the money has already been taxed? I already paid income taxes on the money in my bank account, if we switch over then I'll be taxed again.
2) Tax deductions. I know you want to get rid of them to simplify the code, but it's not realistic to do away with the housing interest tax deduction, for example. 70% of American families own their home, so this would be political suicide.
3) This would create a huge black market for tax-free goods. People would be forming fake small businesses and then apply for resale permits to buy their goods tax-free. What about goods sold online? They will have to be taxed. Will you go after every last person on Ebay?
I think we're pretty much stuck with the system we have.