I have so many different things that I write off.
I mean if youre saying get rid of income tax then fuck yeah im in. 99% of social programs go to, not me. I dont need the government funded, I take care of myself.
Otherwise, tax returns are the only thing that makes sense.
Quote (SBD @ Feb 22 2022 12:17pm)
A tax return for the average person is just simply a check to ensure you paid the correct amount of tax, nothing more. Your employer remits on your behalf and all a tax return does is say you made X income, and you should be taxed X after these deductions and to date you have paid X tax in by December 31. After that here are X credits you may be eligible for, and you end up with a refund or amount owing.
Why would the government be able to keep your tax money if say your employer remitted at a incorrect % or the % of tax being remitted was based off a salary that you were earning at the begging of the year but stopped working mid-year and suddenly your average effective tax rate is much lower than the one you were paying when earning income.
We also use annual tax filings for a significant amount of other things such as social security, housing, etc. In social housing for instance, the rent is based on prior years taxable income.
In short, no, annual tax returns should not be eliminated. Can CRA or IRS automate most returns for the average individual at this point, yes. Most tax returns at this point for an average working class individual at this point can just be autopopulated via free tax software like Turbo tax even after you link your CRA or IRS account to it. What they don't do though is complete the deductions and credits section if you have specific items, perhaps based on where you live for instance. An example being Canada's northern zones. You get a daily living amount for living in one. That could be pulled based on address but if you live with your spouse you both give one and often you can tax plan and shove 2x the daily living deduction the spouse with the higher income for a large refund. Stuff like that. RRSP planning is another one. But if you're just some person earning regular employment income living in Vancouver or Toronto 95% of your return could be automated.
More and more Canadians , cant speak for Americans, are just using free tax software that easily meets their needs. Young people are digitally acclimated and it those that previously would have never touched one because of the confusion when doing it on paper now do their own. Again in Canada for those without computer access or knowledge the Volunteer Income Tax Program (VTIP) works fairly well.
CRA also operates on a honour system to a degree. I'll get my refund within two weeks of filing, but no one has looked at my tax return. It just passed a digital smell test. If a human actually looks at it the reassessment will come 8-9 months later typically. This at least reduces overall gov't cost in processing tax returns.
Very well represented friend.
I just submitted my tax return with, northern zone allowance!, and other northern area perks (Were allowed deductions for medical trips and such as well), and other business expenses. Ill be getting my return deposited directly to my account in about a week. I have had it Re-Assessed later, one time they owed me (And money went in to my account without even asking), and another time I owed them (RRSP issue, applied it to my HBP and deduction both huehue)
That being said, northern allowance is tricky when it comes to how many people are living in your house. If I had two friends living with me I wouldnt get nearly the benefit that I do.
This post was edited by ChronFather420 on Feb 23 2022 06:52pm
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