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no lie there. i have  an annual that averages 150 bucks a year.. but because it is from an S type corp., it requires 3 additional forms to declare it in the proper little box on the 1040.

makes ya really appreciate the paperwork reduction act and all.

ShnickyShnack wrote:

Swiss bank UBS says it has 47,000 accounts avoiding US taxes

The conduct that UBS engaged in, including tricks to thwart the IRS from tracing Americans' funds in Switzerland, "actively facilitates tax evasion (and) amounts to a declaration of war by offshore secrecy jurisdictions against honest, hardworking taxpayers," Levin said at the hearing by the panel of the Senate Homeland Security and Governmental Affairs Committee.

"We cannot allow an environment to develop where wealthy individuals can go offshore and avoid paying taxes with impunity," said IRS Commissioner Douglas Shulman.

The Obama administration is "committed to taking aggressive action on offshore tax abuse," Shulman testified.

Damn socialists! Won't someone please think of the poor rich people?

Poor UBS... Needing a bailout, giving up Nazi gold, having tax frauds busted... Rich white countries just can't get a break in this world.

HeadonaStick wrote:

Who the hell came up with the American tax system?  The system here means that your tax comes off your pay before it ever reaches your bank account, and so unless you are self employed you don't have to file a tax return.  How much could taxes be lowered in the US if you cut out the cost of all that bloody paperwork?

Most people who have automatic witholding overpay - you file a return to get your money back. I don't see that changing anytime soon.

HeadonaStick wrote:

Why do they overpay?  I overpaid on my taxes for about a year and a half because my tax code was incorrectly assigned when I changed contract at one of my jobs.  When I realised there was a mistake I just phoned up and they sent me the previous year's tax as a cheque, and that year's tax got repaid to me in my payslip.  That was an unusual error on my employer's end, and the vast majority of people here don't have problems with overpayment unless they are constantly changing jobs and don't give the correct form to their newest employer.  Why is it so complex in the US?

For most people, it's really not that bad. I generally end up getting a refund of about $1.5 - 2k every year; largely due to the mortgage interest deduction. Since this deduction declines as you start paying into the principle, it really doesn't pay to adjust your witholding amounts - unless you screw with it nearly every year. There are other deductions that you can't generally declare that often end up generating a refund as well.

Besides, it's better to get money back, than to owe it.

HeadonaStick wrote:

Who the hell came up with the American tax system?  The system here means that your tax comes off your pay before it ever reaches your bank account, and so unless you are self employed you don't have to file a tax return.  How much could taxes be lowered in the US if you cut out the cost of all that bloody paperwork?

With a complex tax system, the government can hire all kinds of employees needed to verify the returns, auditors to harass hard working people, while at the same time letting their buddies hide money.

The UK should really think about such a system. It employs a lot of people, sells a lot of aspirin, there's a secondary market for tax preparers and a secondary market for software developers.

Furthermore, there's another market for lawyers when the auditors come.

Think of all the jobs you are losing by having a simplified common sense tax code!

Alien wrote:

robco wrote:

Good to get a little back or owe a little. Getting a lot back or owing a lot is bad. If you get a few thousand back, bear in mind that you've essentially loaned that money to the government - interest free - for a year or so...

Unless that government pays interest.

.tsooJ

The only interest is charged to you for underpayment plus penalties.

robco wrote:

Good to get a little back or owe a little. Getting a lot back or owing a lot is bad. If you get a few thousand back, bear in mind that you've essentially loaned that money to the government - interest free - for a year or so...

I'd say getting the taxpayers to reimburse you for the interest on your mortgage is a bigger benefit than the money you've theoretically "lost" by loaning it to the government interest free.

isaly wrote:

I'd say that tax deductions for lifestyle choices are bad. The mortgage interest deduction discriminates against those who can't afford to, or choose not to, own their own homes.

IT's not there for a lifestyle choice though, it's there to promote home building and the long tail that brings to the economy.

Regurgitating spoon-fed talking points.

Business as usual.

.tsooJ

Oh for christsake--my response was in regards to the line I quoted, not to his 'suggestion' that the UK adopt our tax system.

Last year the people who "loaned" the government money for free by over withholding did better than if they had invested the money on Wall St.