Did you know that the average taxpayer in the US takes about 13 hours to do their tax return, that they pay over $200 for tax prep fees, or that if they want to call the IRS for help, they wait about 22 minutes on average to get through if they even get through at all?

These statistics offer a glimpse into just how convoluted and stress-inducing tax filing in the US is. And with Tax Day upon us, you’d be hard-pressed to find someone who thinks otherwise.

But why exactly is the US tax system so complicated? Why do we even pay taxes? How does the government spend our hard-earned tax dollars?

In today’s episode, Dylan attempts to answer these questions and more by exploring the history of taxation in the US, discussing the current problems with our tax system, and breaking down the many different taxes we pay and why we pay them.

Show Highlights

[01:35] The difference between tax filing overseas and tax filing in the US
[05:52] A brief history of taxation in the US
[13:48] The problem with tax preparation services
[19:46] The different kinds of taxes we pay
[23:32] How line items in the federal budget are allocated
[26:21] Why our tax system is complicated
[30:09] The key to a better tax system

Links and Resources

Tax Day: Where Do Our Tax Dollars Go?