The IRS knows what 95 out of 100 Americans made last year, yet every year we’re stuck doing the math ourselves. It's a bizarre system where we pay someone to tell the government what it already knows, while in countries like Denmark, they simply send a letter outlining what you owe. If it’s wrong, you can challenge it—easy peasy! So, why are we still putting ourselves through this convoluted process? I mean, doesn’t it strike you as strange? Let’s dive into this crazy tax system and explore why we’re in this mess and what alternatives might exist. The episode dives into the absurdity of the current tax system in the United States, where the IRS has all the necessary information yet still requires citizens to calculate their own taxes. I find it mind-boggling that 95 out of 100 Americans have their earnings documented in W2s and 1099s, and yet we are subjected to the daunting task of math calculations every year. It’s like we’re being handed a math test by a teacher who already knows the answers! This system feels not only outdated but also unnecessarily complicated, especially when we look at other countries like Denmark, where taxpayers receive a letter stating what they owe. If there’s an error, it’s on the citizen to point it out, rather than the other way around. It’s a refreshing take on tax season, where instead of dread, there’s just clarity and simplicity. I can’t help but wonder why we continue to put ourselves through this convoluted process when a straightforward approach is clearly achievable. Let’s challenge the status quo and seek out better options for all of us. It’s time for a tax system that works for the people, not against them.

Takeaways:

1. The IRS knows what 95% of Americans earned last year, yet we still have to calculate our taxes.
2. Every year, we submit our tax calculations to the IRS, which can lead to penalties if we're wrong.
3. Countries like Denmark and Sweden handle taxes more efficiently by informing citizens of what they owe.
4. It's perplexing that we pay for tax services to report earnings the IRS already knows about.
5. The tax system often feels like a strange game where the rules seem rigged against us.
6. We should consider why the U.S. tax system isn't as straightforward as in other developed countries.

Links referenced in this episode:

1. jamesabrown.net

This podcast uses the following third-party services for analysis:

Podcorn - https://podcorn.com/privacy