this post was submitted on 23 Feb 2025
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[–] [email protected] 156 points 4 days ago (10 children)

What a bizarre system. Tax should be taken from your payslip. There should be no need for the individual to figure out anything, unless they are self employed.

[–] [email protected] 81 points 4 days ago (2 children)

Income tax always struck me as a deliberate way to make your average joe hate taxes when they could, very easily, be calculated at time of payroll without you ever being shown the “pre tax” amount.

[–] PlantJam 35 points 4 days ago (2 children)

I don't care about seeing the amount or not. I care that I have to deliberately set up my withholdings incorrectly to hopefully not end up owing too much more at the end of the year. If I set it up accurately I would end up owing thousands more.

[–] [email protected] 9 points 4 days ago* (last edited 4 days ago) (2 children)

I'm not sure how withholdings works for your paycheque, but you request where the number is set.

If I set it up accurately

You define what's accurate for a percentage when you set it.

[–] ThePowerOfGeek 12 points 4 days ago (5 children)

Yeah, it's a shit show over here. You kinda guess at how much you will need to pay in taxes, hold back that amount in your paycheck, and hope for the best. And if your life situation changes or the incoming government fucks around with the tax codes, your estimating will be off. Getting it down to a very small refund is the optional solution, but it's not always as easy as you'd think.

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[–] [email protected] 44 points 4 days ago* (last edited 4 days ago) (1 children)

It is taken from the payslip. But then they have us verify what they already know and if you make a mistake you're punished for it! It's bullshit.

I want so bad for the US to do it the way every sane country does it; they just send me a thing so I can make sure they're accurate and only need to take action if they fuck up.

[–] [email protected] 6 points 4 days ago

You can thank Intuit, the company behind TurboTax, for making taxes as difficult as possible. They spend a lot of money lobbying to make filing taxes more difficult.

[–] CompostMaterial 23 points 4 days ago

But what about the tax preparation industry? Won't anybody think of the shareholders? For shame.

[–] A_Very_Big_Fan 10 points 4 days ago
[–] Dremor 8 points 4 days ago (1 children)

That's how it is here in France. It is calculated according to the previous year income, so if you get a raise you'll have to pay a little bit more at the end the following fiscal year, but that's often very little. Last time I got a 2500€ yearly raise, I had to align something like... 100€ 😆.

[–] [email protected] 9 points 4 days ago (6 children)

Why, though?

I'm in Germany and my employer kind of knows how much they pay me. So they can easily calculate the income tax correctly. It's just assumed that each month's salary is 1/12th of my yearly income and taxed appropriately.

You can literally live your entire life without "doing taxes" even once (though it's a good idea for your individual deductions).

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[–] [email protected] 5 points 4 days ago* (last edited 4 days ago)

When I was in China as a kid I never saw any visible form of "taxes". I also never heard of any income taxes. I have no idea how the tax thing works, but I'm assuming they just tax the corporations, which solves both the sales tax and the income tax at once.

(Guangzhou, PRC. Other cities might work differently I have no idea tho)

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[–] udon 89 points 4 days ago (17 children)

Taxes are not the problem. Billionaires grabbing the money on the other side are the problem.

Know the difference

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[–] [email protected] 33 points 4 days ago (1 children)

It's very hard to find the motivation to pay taxes to a federal government that doesn't represent me. "No taxation without representation" drove the revolution against our original king after all...

[–] [email protected] 12 points 3 days ago (3 children)

Now that it's clear the Federal government is just using tax money to give to billionaires, it's going to be extra painful this year. It genuinely just feels like a protection racket now. Pay money to the ruling class, or their enforcers will haul you away to prison.

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[–] [email protected] 23 points 4 days ago (4 children)

Isn't it actually better to owe rather than have a refund? Because if they owe you, then that means they over-withheld from you paychecks throughout the year and its essentially the government borrowing money from you without any interest.

[–] MrConfusion 13 points 4 days ago (9 children)

In the Norwegian tax system, if you pay too much taxes trough the year from your paycheck, you get interest on the amount you paid to much. Likewise, if you pay too little taxes throughout the year, you will have to pay interest on the amount you have yet to pay. So the system is supposed to be balanced in that regard. The interest is on the level of a savings account (3.51% annual atm), so you could make an argument that saving that in a index stock or good bond is a better ROI though, so still recommended to try to not pay too much during the year.

[–] [email protected] 4 points 4 days ago* (last edited 4 days ago)

The US federal government pays interest. The interest rates are quarterly.

I got paid interest on a tax correction & the rate was pretty good: over 5.5 APY, better than a high-yield savings account. I'll owe taxes on it, though.

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[–] [email protected] 7 points 4 days ago

I look at it like a non-voluntary piggy bank. I set the amount I'm going to withhold from every pay check, and anything over, gets given back. Sure it's interest free but if you look at an actual bank, interest rates on that money sitting in a savings account is pennies. And if you're someone who is bad at not spending your money, having it held for you with no real way to withdraw it is helpful when budgeting.

Besides, it's easy to over pay, it's pretty difficult for most people to net zero on tax payments without ending up owing money. And the amount you owe, could be something you hadn't budgeted for. I owe $450 this year. I don't really know where I'm getting that money. Most people will be less happy owing money than over paying and getting a refund.

[–] MisterFrog 5 points 4 days ago (1 children)

I actually wish I could do this in Australia, for the reasons you mention (from a self-interested point of view).

I'm glad tax witholding is mandatory here though, because the government has to pay for stuff throughout the year, on services which we all benefit.

And it reduces the number of people who have illogical emotional reactions on having to pay taxes. (Much less resistance when you get a touch back, than have to pay more)

We do also pay taxes for stupid shit, like our tribute of $300 B AUD to the US for submarines. But alas, such is government spending. We can't all agree what's actually good.

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[–] SatansMaggotyCumFart 37 points 4 days ago (6 children)

Don’t worry DOGE will fix that and every American will get a refund!

[–] DarkCloud 29 points 4 days ago (2 children)

Yep, and this cartoon feels like America would keep voting for this stupid fascist stuff as long as they keep promising the Libertarian ideal of lower and lower taxes.

Americans trained to defund America, the enemy was inside all along.

[–] SatansMaggotyCumFart 21 points 4 days ago (3 children)

Have you read A Libertarian Walks Into a Bear?

At the end of the libertarian experiment (which surprisingly ended in failure) they had almost no services in the town yet still paid as much taxes as the neighboring towns which had tons of fully funded services.

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[–] [email protected] 2 points 3 days ago

Not of MUTT can have anything to say about it

[–] [email protected] 7 points 4 days ago (1 children)

Know you're joking, but just think it's funny to point out that one of DOGE's first acts was to try to kill the direct file system the IRS maintains to make it easier for some people to file their taxes. I feel like that one didn't get a lot of coverage.

[–] Mirshe 4 points 4 days ago

And they just fired a huge chunk of the IRS as well.

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[–] [email protected] 8 points 4 days ago

I ended up owning $38

fucking win! I'm not going look at the total paid in thought, it's much much more than $1.2k

[–] [email protected] 15 points 4 days ago (1 children)

In the country where you don't know what you ll end up paying unless you go to the counter, because the taxes are not included, its only "logical" to not have your taxes deducted from your payslio because reasons

I ll never understand this shit, smh

[–] [email protected] 13 points 4 days ago (10 children)

I'm not sure what country you're talking about, but I assume the U.S. We do have taxes deducted from payroll, and you fill out a form telling the employer (and the IRS) what amount to deduct based on estimated income, family size, and a couple of other factors. Then in April we have to file our official tax form declaring actual income, and if we owe less than what was deducted from our paychecks we receive that back as a refund, but if we underestimated we have to pay whatever taxes are remaining. The reason that filing taxes is so complicated is the sheer volume of deductions, exemptions, credits, etc that have been piled on top of the tax code over the years (plus lobbying by the tax prep industry). It's a stupid system, but it's not as stupid as some people seem to be assuming in this thread. If you set up your withholding right, you shouldn't ever owe taxes when it's time to file.

Now, if you're self-employed or a contractor (and considered self-employed) the whole thing kind of falls apart and it's a lot easier to wind up owning a bunch of money. Like I said, it is a stupid system, just not quite as crazy as some people seem to be assuming.

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[–] finitebanjo 7 points 4 days ago (5 children)

If you live in the USA then the government didnt decide to keep making it worse, the people did.

GOP wrote the last tax plan and they're about to write the new one.

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[–] [email protected] 6 points 4 days ago

Haha, my last tax filing I owed another $40k.

My own fault for not paying taxes during the year though.

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