A car sale is an activity that is already registered with the government. It doesn't seem impossible for the data about an electric vehicle sale and it's purchase price to make its way to the IRS. The IRS could create an API to share this type of data with tax preparation software.
> their pet things that are obviously worth complicating the tax code to do
I agree that this is at the root of the problem but I think that can be addressed by making it easier to file taxes or by reducing the complexity of the tax code. The child tax credit is a relatively common type of benefit across rich countries. The tax code could be simplified by administering this benefit via direct cash transfers through a different government agency. I think from this perspective, the IRS is _extremely_ efficient at benefit administration.
My personal opinion is that the tax code is not always a bad way to administer benefits but the paperwork burden is the problem and the experience of filing taxes needs to be made easier.
Car sales are not registered with the US government. They’re registered with the state government. The two do not share physical infrastructure, data, policies, or even common goals, unless a specific agreement has been worked out between an individual state and the feds.
To me this feels a little like saying "the federal government doesn't know when people are born because births are registered with local governments". In practice this is all a matter of state capacity to keep track of this information. Given political will to make it happen, I don't see a reason why information about car sales couldn't make its way to the federal government in order to make tax filing simpler.
> their pet things that are obviously worth complicating the tax code to do
I agree that this is at the root of the problem but I think that can be addressed by making it easier to file taxes or by reducing the complexity of the tax code. The child tax credit is a relatively common type of benefit across rich countries. The tax code could be simplified by administering this benefit via direct cash transfers through a different government agency. I think from this perspective, the IRS is _extremely_ efficient at benefit administration.
My personal opinion is that the tax code is not always a bad way to administer benefits but the paperwork burden is the problem and the experience of filing taxes needs to be made easier.