I don't know if it has evolved this way on purpose or not, but the Federal Income Tax system is a stroke of genius. None of us like paying taxes, but few of us rarely realize how much taxes way pay even though this would be trivial for federal taxes.
For most of us, taxes are taken out throughout the year. Then, early in the next year we "do our taxes" which involves filling out a bunch of forms in some manner. At the end of this exercise, the number we are left with is a refund or a small (relative to the actual tax) check to write. This is the genius. I have almost never heard anyone comment on the total tax they pay, even though this number is clearly written, as it comes from the tax tables for most of us. What I always hear about is the refund (gleefully) or the amount owed (with disdain). The conspiracy theorist in me thinks this must be done on purpose. Thinking about this I had to go back and see what my actual tax was, even though I did know what my refund was. Chalk one up for government mind control.
Lots of numbers are thrown around about the unfairness of taxes, but they are never really explained. Warren Buffet claims his secretary pays a tax rate of 35.8% compared to his 17.4%. I have a hard time understanding where 35.8% comes from. Is this overall taxes including Social Security and Medicare? Is this relative to Gross income or Adjusted? I won't even attempt to understand 17.4%.
Since it is "tax time" the TV adds are filled with commercials for Turbotax and various human-based tax preparation. This is good for TV since New Years resolutions have been thrown into the dustbin, the commercials for gym memberships and smoking cessation products are waning.
This year's commercials for H&R Block are often very condescending Everyone else is an idiot but them. They probably work though as there is an innate fear of spending a few extra dollars even if preparation costs a lot more than that.
What I can't believe is that the average person's taxes are so complex that they can't do them without payed help. The IRS still allows taxes to be done with paper and pen. A few forms, a bit of time and done; not too complex. Maybe my finances are just too simple though.
I'll admit to being a dinosaur in this regard although I did try electronic filing a few years ago. I tried to use the IRS "Free File" option. When it came time to actually file though, I continued to get the error message that my name and social security number did not match. I was stuck, I could not continue to file electronically (I am aware of what my name and social security barcode is) but wasn't sure if I could back out and file by paper. I chose the latter and all went well. Since then, I've never gone back to file electronically. I can hold a grudge forever.
What is frustrating is that the IRS really does have a lot of smart people. Their web site is super easy to use and find information that is needed - their search option actually works. Alternatively Minimum Tax help - walk through the questions. The IRS is prevented by law from creating a simple web-based filing system that probably 95% of us could easily use making tax preparation easier and saving the government untold quantities of money. Lobbying efforts by groups representing H&R Block and their condescending commercials prevent this gentler approach.
As I was doing my taxes this year, one thing that hit me was that every word on every from; every statement in the instructions was actually written by a human, and assuredly had multiple bureaucratic approvals before being distributed to us taxpayers to use. Every word.
Which brings up the book, The Org by Fisman and Sullivan.
I don't remember where I heard about this book, but I thought it was going to be a snarky and cynical look at the office, a la Dilbertesque. It wasn't. This was an economist's view of the structure and function of large organizations and how and why these organizations are the way they are; why they often look the same.
The beginning of the book was slow and painful. This may have been because it was not what I was expecting. The second half of the book was much more interesting, explaining why painful bureaucratic things exist the way they do and why faceless bureaucrats behave the way they do.
It also boxes in much of the systems in place as one of motivation of employees and demotivation of unhelpful (lazy, human) behavior.
The section on office culture and how it relates to productivity and perceived productivity was truly enlightening. I continue to struggle to know how to use this information in my own job, but there is a nugget there somewhere.
The one part where the book absolutely falls flat is where the authors struggle to rationalize the exorbitant pay given to chief executives. Their reasoning may work from an economists standpoint, but they fail to recognize the symbolism that comes from such excess in the face of employees' pay which constitutes a rounding error of an executive's. Rationalizing the pay given to company heads who have failed falls absolutely flat. Only tacit acknowledgement is given to the reality that corporate boards are controlled by other company heads and a "lets scratch eachother's back" situation is unavoidable. Most of us are comfortable taking care of others like ourselves as long as it does not negatively affect those most like ourselves, which is ourselves. Golly if that doesn't define bureaucracy (I can never spell any variation of that word. Damn the French...).
Spoiler Alert: In the end, the authors basically say that the reason large organizations are the way the are, work the way they do and tend to look very similar despite very significant differences in business is because there are many competing interests. Since business is designed to get the most possible out of every employee (who are trying to get the most out of their employers) and oversight only comes with documented expectations we are left with few alternatives. And, oversight requires oversight.
So the best we can expect is "glass half full."
In other words, if you want to have a job with a paycheck, or if you want to be a boss and have the growth possible with contributing employees. Suck on it.
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