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Tag: tax

Revitalize your city’s probably-terrible public transit system with a new and unexpected source of funding!

Background:

In many cities, there is no substantial funding for public transit. This results in extremely poor service (routes with minimal coverage of the city and few buses). This leads to a “death spiral” where people stop taking the (terrible) public transit, the service gets even worse, and so on.

These problems can, in theory, be fixed with enough money, but who wants to pay for it?

Proposal:

There is a simple way to encourage companies to pick up the tab for public transit. Currently, advertising is the only method of obtaining private funding for buses, but maybe we need to think of some other options.

Consider the bus route in Figure 1:

2-sponsored-route-before.png

Fig. 1: Here is a default bus route, before it is changed it due to corporate sponsorship. Circles indicate bus stops.

In order to entice a company to help pay for this bus line, we’ll let the company have some influence over where the buses go!

This could result in several possibilities, including:

Possibility 1: A bus route could be “detoured,” with a new stop added in front of a specific business (Figure 2). This would bring new customers to the business, and allow the business’ existing signage to reach more eyeballs.

3-sponsored-route-after
Fig. 2: If a chicken-themed fast food restaurant sponsored this bus route, the final route might be detoured as shown. Although the route might take a few minutes longer, the passengers would be delighted by delicious and economical fast-food chicken!

Possibility 2: One or more bus routes could be re-routed so that the route itself spells out a company name or slogan on the map. Since these routes would show up on online map searches for transit routes, the chosen phrase (e.g. “CHICKEN_4_LESS”) would be shown to countless map-viewing individuals, even if they didn’t end up actually taking that specific bus.

Possibility 3: As a more nefarious option, the sponsoring company could route the buses around competing businesses, rather than toward their own.

Conclusion:

This is a great way to fund public transit that does not require city bonds or taxpayer funding.

PROS: Helps promote the futuristic cyberpunk-style dystopia that was promised in 1980s science fiction.

CONS: Might slow down buses a lot, since these chicken-vendor-based routes are unlikely to be optimal for commuters.

Expand the ability of your small business to collect tips using the incredible secrets of UI / UX design plus human psychology!

Background:

In the United States, certain classes of business receive a substantial amount of their total revenue in the form of tips. Restaurants are probably the most common example.

However, now that a huge fraction of transactions are done by credit card or phone, it has become feasible for additional businesses to get in on the tip-collecting process (tip-collecting tablet example in Figure 1).

1-tablet-tip.png

Fig. 1: A lunch truck or takeout restaurant might have a tablet like this one. If designed properly, the user interface should subtly persuade the customer to click one of the tip buttons.

For example, previously, a lunch truck might have had an anemic tip jar—obviously a repurposed peanut butter jar—with 87 cents in it. But now, that same truck can just put a button labeled “TIP: 15%” on their electronic checkout screen, and a substantial fraction of patrons will select that option.

As a thought experiment, consider how many people would tip two dollars on a $10 burrito cash transaction (very few), then compare that to the number of people who would click the “20%” button on an electronic checkout (many more).

(Please appreciate the high-quality market research that went into the preceding sentence.)

The issue:

While the best part of this system is that it allows a normally non-tip-based or non-service business to get tips, there are still stubborn holdout customers who will not include (for example) a 25% gratuity for an oil change, or when buying tomatoes at a grocery store, or when paying a traffic ticket.

But there is still a way to persuade these individuals!

Proposal:

In order to incentivize people to click the tip button (instead of just the “checkout: NO TIP” button), we can simply have a secondary screen that shows the tip amount.

People might object to this brazen attempt to shame them for not including a tip, so we will disguise it a bit by calling it an “Order Confirmation” screen, and using it to provide a customer transaction number (i.e., it is a supplement to the normal “your order is number 326, your burrito will be ready when that number is called” process).

 

2-order-display.png

Fig. 2: Here, we see a checkout counter with the tablet from Figure 1 at the bottom, and a helpful order confirmation screen at the top, showing off a customer’s generosity to other patrons along with a reminder of their order number.

Conclusion:

People might object to having the full dollar value of their transaction visible on the “confirmation screen,” so we could potentially show only the tip percentage rather than the full value.

PROS: Increases previously-untapped revenue streams for low-margin businesses.

CONS: None!

One trick of common courtesy that would give you a new sense of satisfaction from paying your taxes!

Background:

It’s always polite to write a thank-you note when you get a gift. Especially if it’s a large sum of money!

For example, a thank-you note from a child might look like this: “Dear Grandma, thanks for the money for my birthday. I used it to buy a bicycle. Here’s a picture… (etc).”

Proposal:

The various benefits of a stable government are generally abstract and far-removed from the taxpayer.

But the pain of paying a huge chunk of money is obvious and immediate!

Governments across the world might benefit from sending a “thank you” note to each taxpayer, indicating what the money was used for!

(Some charities already do this, sending personalized thank-you notes in return for donations.)

Here is a mockup of what it would look like for the U.S. Government:

traffic-cone

Fig 1: A taxpayer who didn’t make a lot of money during the year might get a letter that looked like this.

Fig 2: A taxpayer who made a larger sum of money might get a more interesting thank-you note. The wizard hat was probably grossly overpriced, however.

octo

Fig 3: Sometimes, your tax dollars wouldn’t actually be enough to pay for the entirety of a specific purchase. In this case, the fraction purchased would be indicated, and the picture would be partially grayed-out to match. For example, this person’s tax revenue was used to partially buy an octopus, but their contribution alone was only sufficient to pay for five of the octopus’s eight legs. What strange and secret purpose did the government need an octopus, anyway? Well, the answer is  ████ ████ ██, ████ ██ █████ ██ ██████████ and also  ████ ██ ████ ███ ████ ██████ ████ ██ ████ ███ ██ ██ █ ██ ██████████ .

Conclusion:

This is a great idea! The many readers of this post who work at the IRS should lobby to have it implemented immediately.

PROS: Increases both accountability to the taxpayer of tax revenue and the personal connection of citizens to their representative government.

CONS: ████████ █ █████ ██ ███ █ █████ ! ████

blank

Supplementary Figure A: A blank “taxpayer thank-you note.”

unknown-tax

Supplementary Figure B: Original “taxpayer thank-you note” mockup.

Is the U.S. Tax Code more complicated than Magic: The Gathering? The answer may surprise you!

Background:

Some games are notorious for having extremely complex rulesets. For example, the card game Magic: The Gathering has pages and pages of additional rules, commentary, and clarification.

An actual example: 8/1/2005 Goblin King now has the Goblin creature type and its ability has been reworded to affect *other* Goblins. This means that if two Goblin Kings are on the battlefield, each gives the other a bonus.”

Is this errata more complicated than the U.S. Tax Code? Probably not. But it might be close!

tax-haven

Fig 1: An example card from a hypothetical U.S.-tax-code-based version of Magic: The Gathering. Card designs were generated using the site http://www.mtgcardmaker.com/ .

Proposal:

It might be possible to create a solitaire-style card game out of the tax code—causing a player to be tricked into doing their own taxes while playing the game!

At various points in the game, the player would need to input certain pieces of tax information (e.g. W2 forms, any 1099s, stock purchase and sale receipts) to a web site. These numbers would then be used to affect the game somehow, for example:

  • W2: Input box #2 into this form. Now add that many Molten Lava Swamp Fiend tokens to your deck.
  • 1099-INT: Input box #4 into this form. Add that many Barrier of Woeful Rueing cards to your Fiefdom pile.
  • Clean air car deduction: If you purchased a qualified electric vehicle this year, place a Slithering Chariot card face-down on the Coastal Fortification board. This token is unaffected by HOV lane restrictions.

Fig 2: Here are a few more representative cards. With strategic play, you can have fun AND reduce your tax liability at the same time!

PROS: Makes taxes fun an accessible, which reduces procrastination. May increase your chance of getting a huge refund!

CONS: If you file your taxes this way, you will definitely go to prison.