> it is expected for the same population to have the financial literacy to file their taxes accurately
I assume most people have too much money taken out of their paycheck for taxes, so the net result is that the government takes in extra money.
I assume most people have too much money taken out of their paycheck for taxes, so the net result is that the government takes in extra money.
Fixing the withholding system to account for the real world would go a long way toward simplifying reporting and would improve compliance.
You only need to withhold 90% of the taxes you owe to avoid an underpayment penalty, so you don't need to withhold too much.