Simplified Tax Filing: Postcard Filings and Trump's Vision

Speaker Paul Ryan boasted about the 'postcard' tax-filing concept, promising simplicity with all questions fitting on one page and just 14 or fewer dollar amounts to fill in. However, critics argue that this vision, while tempting, may not be as straightforward as it seems. Currently, many taxpayers can already complete a simplified one-page tax form through the 1040-EZ, which requires relatively simple income details and minimal calculations.

The 1040-EZ form is available to single filers or married filing jointly who do not claim dependents, have adjustments to income, credits other than the earned income credit (EIC), are under 65, not blind, and have taxable income of less than $100,000. This form was designed to streamline the tax-filing process, yet it still requires familiarity with income sources and the nuances of the tax code.

Historical Efforts and Challenges

Efforts to further simplify the tax-filing process have historically faced significant challenges. Congress and the IRS have considered expanding the eligibility for the 1040-EZ form and implementing even simpler options, but these efforts have often been met with resistance from tax preparation companies such as HR Block. These companies, profiting from complex tax forms and services, have successfully lobbied against the simplification of the tax filing process.

The current lobbying landscape reflects a critical tension: while simplification aims to make tax filing accessible and straightforward, the complexity ensures ongoing business for professional tax preparers. This raises the question of whether the primary interest is in consumer convenience or in maintaining the current tax preparation industry's economic model.

Trumponomics and the Postcard Filings

The idea of 'postcard' tax-filing under a Trump administration has not yet been officially approved, which means it remains a speculative and uncertain concept. Critics argue that even if such a system were implemented, it might not lead to the intended simplification. As an exaggerated example, one could conceivably design a 1040 form that fits on a single postcard. For each individual, the form could ask for a single line listing all income from all sources, followed by a second line prompting the taxpayer to send in the form. However, this approach is both humorous and unlikely to align with the needs of most taxpayers.

While some might find the idea of minimalistic tax filing appealing, the devil is often in the details. As an over-the-top example, one could have a 1040 form that fits on a postcard. Line 1 could ask for all sources of income, while Line 2 simply states 'send it in.' Such an extreme simplification might be seen as a joke by most taxpayers, even among those politically aligned with the President. For instance, Bernie Sanders, possibly a fan of such extreme simplifications, might still agree that this idea is impractical and potentially harmful for most people.

Conclusion

The prospect of postcard tax-filing under Trump's tax plan remains a speculative concept without concrete proposals or implementations. Critics argue that even if such a simplified filing option were available, it may not bring about the intended benefits of ease and accessibility. The current 1040-EZ form, despite its simplicity, still requires taxpayers to be aware of their income sources and tax obligations. The challenge lies in assessing whether such simplification or extreme minimalism truly serves the best interest of the American taxpayer or if it is merely a political slogan.