posted by jmog
80% of the people don't even pay attention to how much of their check is gone to taxes.
I've mentioned this a few times over the years, but if you guys want some insights into the financial stupid and irresponsible, pick-up some behavioral finance books.
Anyway, one of the insights is how people compartmentalize budgets and expenses. For example, send someone a $600 stimulus check and it's a windfall to be spent, even if their bonus was $1000 lower than average this year...so they've increased spending, eventhough their total income decreased.
With respect to taxes, it's absolutely hideous. You take from a bunch of different sources a little at a time, and this is more tolerated and less noticeable than a one-time payment annually (especially when most taxpayers end-up with a refund).
People have advocated for more transparency so people understand their true tax burdens. To be honest, I'd have to put in some serious work to calculate how much sales tax I'm paying. The rest is pretty clear on the tax return, although a lot of people don't do their taxes and only pay attention to the refund or what they owe (and that's the "beauty" of how the system is set-up). Even then, it's not entirely straightforward because you take out FICA to get "adjusted AGI", as if what you actually made isn't yours to begin with. And then you have to go over to your state tax return to get the rest, and by the way property taxes are only a deduction on the return since that's collected thru another process.
Throughout history, a central tenet of maintaining govt control has been to keep the mob stupid and in the dark. There may not be a better example of that than our tax system.