The piece argues that low tax literacy in the US is widespread and has serious financial and legal consequences, especially for small business owners and self‑employed taxpayers. It emphasizes the need for better taxpayer education and highlights existing resources like IRS programs while cautioning against relying on generative AI for tax preparation.
Key takeaways:
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A majority of Americans lack basic tax literacy, particularly around how federal income tax is calculated and how the progressive tax rate structure works.
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Poor tax knowledge can lead to overreliance on paid preparers at best, and at worst to improper deductions and potential trouble with the IRS for small business owners and self‑employed people.
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Improving tax literacy requires more government investment in taxpayer education at all levels and greater use of resources like the IRS’s Volunteer Income Tax Assistance (VITA) program for eligible filers.
“Too many Americans don't know, number one, what's due when, and number two, how tax is calculated and both the politics and policy behind that," says Bruckner.
Read the article.
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