Filing Taxes: A Global Comparison

Introduction
Filing taxes can vary drastically depending on the country of residence. This article explores the contrasting experiences of filing taxes in the United States and other countries, highlighting the complexities and efforts to simplify the process.

Vast Differences: US vs. Sweden
For Jens Peter de Pedro, filing taxes in Sweden is a streamlined process where the government provides a pre-filled return. In contrast, in the US, his American wife faces a time-consuming and stressful ordeal. The US tax code's complexity, estimated at 4 million words, contributes to the burden for many Americans.

Complexity in the US Tax Code
The US tax code encompasses social and economic policies, leading to numerous credits and deductions. This complexity arises from incremental changes over decades, making it difficult to manage. While other countries may have specific agencies for social welfare programs, the US relies on tax incentives for assistance.

International Comparisons
In the UK, the Pay As You Earn system automatically deducts taxes and reduces the need for returns. The UK aims for precise withholding, which is challenging in the US due to the married filing jointly tax status and other factors.

Simplified Approaches
Some countries, such as Sweden and the UK, have made strides in simplifying their tax systems for 9-to-5 workers. However, the self-employed face challenges worldwide. Pre-populated returns and government assistance with calculations could further streamline the process.

Simplification Efforts in the US
The Tax Cuts and Jobs Act (TCJA) of 2017 implemented measures to simplify taxes, such as doubling the standard deduction. The IRS Direct File program allows for electronic submission of returns, but it remains limited in its functionality.

Future Steps
Further simplification in the US could involve pre-populated returns and automated calculations. However, this requires legislative changes and collaboration among government agencies. The first step, Direct File, represents progress towards a more user-friendly tax system.

Conclusion
Filing taxes varies significantly across countries. While the US has complexities rooted in its tax code, it has made efforts towards simplification. By learning from international best practices, the US can strive to improve its tax system, making it more manageable and equitable for all taxpayers.