11/08/2005

Do You Need Help With Your Taxes???

There is currently a new push in Washington to simplify the tax code. Changes will hopefully take place soon. The Tax Code has become so complex that it is almost impossible to do them on your own and to do them correctly. In 2003, 60% of the population paid someone else to do their taxes, and another 25% of the population purchased computer software to help in the hellish process of doing their taxes. Some of the changes being proposed are the repeal of the Alternative Minimum tax, which is a nightmare in and of itself, and also the simplification of certain deductions. It is about time that there is tax reform. Maybe in a few years we won't have to be deciphering hieroglyphics any more, but we will be able to do our own taxes and do them right.

5 comments:

Alex said...

I find it ridiculous that 60% of people have to have their taxes done by someone else. I just am happy that I will be able to do them myself, and can use the money I would have spent on taxes to buy something fun. Although, I wouldn't mind being the person paid to do someone's taxes, that would be nice.

Morgan said...

I think it would be great if the tax code could be simplified, but I have my doubts as to whether it will ever happen. Why the government insists on making taxes a nightmare is a mystery to me. If so many people are having to pay someone else to do something that they have to do by law, good ol' uncle Sam should rethink his policies, and should shrink things down a bit.

Tyler said...
This comment has been removed by a blog administrator.
Tyler said...

Depending on how in-depth your tax situations is I believe that sometimes it is better to have a professional prepare your taxes on the sole basis they are current on tax deductions and laws. In some cases your tax accountant just may save you much more than its costs you to have him prepare them.

Dr. Tufte said...

Taxes are complex because of (economic) rent seeking by tax professionals. They are using their political clout to have government enact things that will line their pockets.

They could do this in 2 ways: 1) have the government require you to pay them for their service, or 2) make the system less transparent so that you hire them voluntarily. The latter is what is used in this case, and it has been used by medicne men, shamans, religious officials, and bureaucrats for thousands of years. So, if you think voodoo should not be encouraged or supported by the government, then you should be in favor of tax simplification.