How come the IRS doesn’t just mail you a bill if they know exactly how much you owe in taxes?
In: Economics
The simple matter is: in the US, changes in the tax code are used to modify citizen behavior.
Want people to buy more houses? Put a tax credit on paid mortgage interest.
Want people to have more kids? Deduction per child dependent.
Want companies to pollute less? Create a tax credit for being clean.
And on and on and on and on… The tax code in the US is the -first- lever politicians pull to enact specific social change.
Latest Answers