I'm now 36 years old. In spite of really trying, numerous times, I have never been able to feel as if I even "vaguely" grasp the basic tax concepts for my country (Sweden) or any other for that matter (USA is often mentioned in various contexts), let alone specific tax laws or "loopholes".
There seems to be endless complexity related to this, with so many weird terms sprinkled into any official or even Wikipedia article that I'm just helplessly lost very quickly, even though I want to understand it. If for no other reason than avoid being sent to prison.
Why do governments make tax laws so incredibly difficult to understand if they really want citizens to pay them? Why not simply, clearly state (for example):
- You must pay us 25% of any income you get from working for somebody else.
- You must pay us 30% of any capital gains you make from trading stocks or crypto currencies.
- You must pay us 15% of any profits you make from running your own company.
- If you fail to tell us the right amounts, you will go to jail.
Why not simply something like that? They have endless webpages that link to each other and each are so vaguely and cryptically written that I truly have no idea what they are talking about.
Why make something so incredibly important so incredibly complicated? Isn't that counterproductive? I can guarantee that there are far less interested people out there who give up much quicker than I, and whether out of spite or by mistake, pay less than they are expected to, simply because they cannot understand what they are saying.