Are there any studies on the ignorance of the average taxpayer? I wonder what percentage can explain the difference between a standard deduction and itemized deduction? I know I couldn't until recently and I have a Masters degree in engineering. I would think the vast majority can not as well considering 70% of US population does not even have a Bachelor's degree.
I expect it is worse than the 30% error rate attributed to the IRS employees who staff the IRS toll free help hotline, per a late 1990s study, for one.
Why limit it federal/state tax items? While many people do not read the instructions, that relates to ANYTHING not just taxes, it takes 'special' type of person to actually read something as basic as an IRS Publication 17. Not to mention the volume of other things.
But consider the number of people who seem perplexed at the ATM. The homeowners who have no idea how to read their utility bill (that's taxes on there??), and the sterotype of flashing "12:00" on the VCR didn't come from thin air! Not to mention VCR+!
The world is populated by people who can't do and don't know LOTS of stuff!
- when my 7 yr old saw the label on a hair dryer "do not use while bathing or showering" she asked how stupid they thought people were. I had to explain that every label like that represented a number of people who likely died or were injured. STD deduction? I bet 9 of 10 people have no idea what a Roth IRA is. And no, the readers here are not your average population.
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