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Civics 101

Why Do We Have an Income Tax?

Civics 101

NHPR

History, Government, Society & Culture

4.22.6K Ratings

🗓️ 14 February 2023

⏱️ 39 minutes

🧾️ Download transcript

Summary

Most Americans need help to file our tax return each year - about 90% of people use technology like Turbo Tax, or hire a human tax preparer.  Why does it feel like it takes degree in accounting, or the money to pay someone with a degree, or computer software, just to comply with the law?  We talk about why our income tax system is the way it is: full of complexity, difficult to navigate, and extremely personal. It's a system where things like who you work for, what kind of resources you have, and how you spend your money, are directly connected to how much you owe the government each year, and what the government provides for you in return. So how did we get here?  Helping us untangle this history is Eric Toder, Institute fellow in the Urban-Brookings Tax Policy Center at the Urban Institute, Beverly Moran, Professor of Law at Vanderbilt University, where she focuses on federal income taxation, including individuals, partnerships, tax-exempt organizations and corporate, and Joe Thorndike, Director of the Tax History Project at Tax Analysts.   Stay tuned for our follow up episode on how to do your taxes successfully, and correctly - we'll talk about the IRS, enforcement and compliance, and the rise of tax preparation software.  CLICK HERE: Visit our website to see all of our episodes, donate to the podcast, sign up for our newsletter, get free educational materials, and more! To see Civics 101 in book form, check out A User's Guide to Democracy: How America Works by Hannah McCarthy and Nick Capodice, featuring illustrations by Tom Toro. Check out our other weekly NHPR podcast, Outside/In - we think you'll love it! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Hi, this is Civics 101, I'm Hannah McCarthy.

0:02.8

And I'm the Capitice, and I guess we're just jumping in.

0:06.3

No warm up, no archival.

0:08.0

Just going right into this?

0:09.6

Well, I do have a question for you, but it sounds a lot like a question we might ask at the beginning of an ad,

0:16.5

which this is not. This is a real show.

0:19.4

We are not trying to sell you on anything, but we are going to talk about something that you're probably hearing a lot of ads about right now.

0:28.5

And that is taxes.

0:32.0

Oh dear.

0:33.0

They say everybody's got different problems, well maybe so, but I've got a song about one problem that every one of us have.

0:39.5

That's taxes.

0:44.0

So I solemnly swear I'm not about to sell you a tax service, but I do want to ask to any of these questions sound familiar to you.

0:52.8

How many kids do you have?

0:54.2

Do you work from home? Did you say for retirement? Did you pay tuition?

0:57.6

How about student loans? Did you get money from an inheritor?

0:59.6

Did you buy an electric fee? Did you donate to a chair?

1:01.6

Did you buy a house? Sell a house? How big is your office?

1:04.4

Yeah, I'm familiar with all those questions, Hannah, because I answer them when I file my taxes.

1:09.5

And Nick, if you don't mind me asking, how did you do your taxes last year?

1:15.7

Well, after I put them off, I used an account.

1:19.2

Right, like you, most Americans need help figuring out how much money we owe the government each year.

1:25.5

About 90% of people use technology like turbo tax or hire a human tax preparer to do their tax return.

...

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