Individual taxes are a nasty thing to deal with. You have to assemble all of your receipts, fill out forms, and then pay the government an obscene amount of money for what you owe them.
But why do Americans have to worry about this when they could just let the US government handle it? They don’t need our tax dollars! The answer is that the United States needs more revenue in order to sustain their spending patterns.
This means that individual taxpayers are responsible for paying nearly half of the federal budget’s expenses. So next time you’re filling out those pesky 1040EZs, remember that if it weren’t for your hard-earned income there would be no military or social security benefits!
Why the US government does not do individual taxes
- Individual economics are unpredictable and complicated
It is hard enough for regular people to keep track of their own money, but it is even more difficult for the government to estimate how much money they would earn in a year. This leads to an increase in taxes among middle-class families, which could have been curbed if the US had done individual taxes.
- Individual taxes benefit the rich more than the poor and middle class
The upper echelon is able to afford accountants and tax law firms that can help them pay fewer taxes than they should be paying in order to save their own money. This gives an unfair advantage to the wealthiest Americans, which leads us to our next point.
As you can see, individual taxes are not favorable to the average American because of how expensive they are to file for and how complicated they are. However, these taxes also lead to an even more unfair economic system that benefits the wealthiest citizens more than it should. The US government does not do individual taxes because having working-class citizens pay for the bulk of federal expenses is a better way to sustain their economy.
- Individual taxation would mean a decrease in revenue
It would be counter-intuitive to the US government’s goals if they started doing individual taxes. If this happened, then their revenue from individual taxpayers would end up being significantly less than what it is now. In order for the US to continue receiving enough money to assist lower-class citizens and invest in the US’s infrastructure, they need every dime that they can get from individual taxpayers.
The US government does not do individual taxes; it has a complicated tax system and is not designed to handle individual taxes. However, it is up to you to report your income. If the IRS determines that you have unreported income, they may take action against you and there are penalties for failing to file a return with all of the required information.
Avoid these potential consequences by hiring tax return experts in order to complete your tax filing or offering assistance through our business services. Our team of experts can help you navigate the complexities of this intricate tax code.