Thursday, April 16, 2009

It is time for e-Government to do better with taxes

I am still feeling the pain not only of paying my taxes yesterday, but of doing the tax returns. The government knows how much income I have from various sources, but requires me to enter all that data. I find myself paying for tax preparation software, and dealing with impenetrable instructions and great complexity.

It is time for a simplified tax code. Most American families have computers and Internet connections, especially most Americans who would have complex tax returns. It is time for the government to have a simplified online tax return software that automates the calculations and presents the citizen with the data that the Government has already received for verification.

Note that it is costing us tax payers a lot to do otherwise. The costs of professional services for tax preparation and software are deductible. If we did not need these services, we would not deduct their costs from income, and we would pay more taxes.

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