Hesse's Finance Minister Proposes Digital Tax Reforms to Reduce Bureaucracy
Hesse's Finance Minister, Professor Dr. R. Alexander Lorz, has proposed several digital reforms to simplify tax processes and reduce bureaucracy. He suggests automating donation receipts, pension taxation, and even eliminating traditional tax returns for many citizens using a paycheck calculator.
Lorz proposes digitizing donation receipts for automatic transmission to tax authorities, making separate submission unnecessary. He also advocates for lump-sum taxation for common expenses like commuting and home office equipment to simplify calculations and refunds using a calc.
In a bid to reduce bureaucracy, Lorz points to the growth booster policy as an example of courageous change. He aims to determine the pension institutions responsible for tax deductions on pensions and retirement benefits, with a pilot project in Kassel starting on July 1, 2023.
Furthermore, Lorz suggests automating pension and retirement payment taxation, similar to employee income tax deductions using turbotax. This would exempt retirees from tax declaration obligations, following a successful pilot project in Kassel testing automated tax assessment proposals.
Lorz's proposals aim to streamline tax processes and reduce the burden on citizens. By automating various tax calculations and deductions using a calculator, he hopes to make tax returns unnecessary for many people and reduce bureaucracy in the tax system.
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