BHoffman posted this earlier, under the title OT - Percolating Tax Code Reforms. I don't think it's "off-topic." I think it's interesting enough to start a whole new thread. 
According to the article at Accounting Today, referenced in BHoffman's post, S. 437 is a bill that would require the IRS to provide every U.S. taxpayer with a receipt for their income tax payment, including an itemized breakdown of how that payment would be allocated to various government spending programs.
Details can be found on the websites of the two senators who have sponsored the bill:
It's certainly an interesting idea, that appears to be tied to popular notions of transparency and accountability.
But I'm honestly not convinced that this is a good idea. I would be curious to know if Sen. Nelson or Sen. Brown have any idea what this program would cost in terms of administrative expenses within the IRS.
Moreover, this type of "receipt" is likely to generate a lot of calls to the IRS and to tax professionals. The increased call volume to IRS call centers would be difficult to predict, but it would definitely have a cost associated with it.
Taxpayers would get a receipt showing how much income tax they paid, even if they actually got a refund. The receipt would presumably show their tax liability--not their refund or balance due. Unsophisticated taxpayers are likely to call the IRS, or their tax pro, possibly in a panic, thinking that the receipt is actually a bill. Even if they realize that it's not a bill, they are likely to ask: What's this receipt for? I didn't pay $1104 in tax. I got a refund of $843. Did you screw up my taxes?
I wouldn't mind taking a few of these calls from my clients. I wouldn't mind explaining to this hypothetical client that he actually paid income tax, even though he got a refund check. I suppose it might actually help more citizens understand our tax system, and how they are funding our government.
But I question whether it would be worth the extra cost to the government itself, especially when you account for the increased call volume to the IRS.
As for an "itemized breakdown" of how your tax dollars are spent...
Memo to Sens. Nelson and Brown:
It's already in the instructions for Form 1040.
See the pie charts on page 94, or the following link:
BMK
According to the article at Accounting Today, referenced in BHoffman's post, S. 437 is a bill that would require the IRS to provide every U.S. taxpayer with a receipt for their income tax payment, including an itemized breakdown of how that payment would be allocated to various government spending programs.
Details can be found on the websites of the two senators who have sponsored the bill:
It's certainly an interesting idea, that appears to be tied to popular notions of transparency and accountability.
But I'm honestly not convinced that this is a good idea. I would be curious to know if Sen. Nelson or Sen. Brown have any idea what this program would cost in terms of administrative expenses within the IRS.
Moreover, this type of "receipt" is likely to generate a lot of calls to the IRS and to tax professionals. The increased call volume to IRS call centers would be difficult to predict, but it would definitely have a cost associated with it.
Taxpayers would get a receipt showing how much income tax they paid, even if they actually got a refund. The receipt would presumably show their tax liability--not their refund or balance due. Unsophisticated taxpayers are likely to call the IRS, or their tax pro, possibly in a panic, thinking that the receipt is actually a bill. Even if they realize that it's not a bill, they are likely to ask: What's this receipt for? I didn't pay $1104 in tax. I got a refund of $843. Did you screw up my taxes?
I wouldn't mind taking a few of these calls from my clients. I wouldn't mind explaining to this hypothetical client that he actually paid income tax, even though he got a refund check. I suppose it might actually help more citizens understand our tax system, and how they are funding our government.
But I question whether it would be worth the extra cost to the government itself, especially when you account for the increased call volume to the IRS.
As for an "itemized breakdown" of how your tax dollars are spent...
Memo to Sens. Nelson and Brown:
It's already in the instructions for Form 1040.
See the pie charts on page 94, or the following link:
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