If governments can accurately do your taxes for you, why would it overwithhold people's income?
This is US specific and more of a political than an economic or technological problem.
In the US, there is a lot of lobbying by tax preparation firms for the antiquated tax system to remain unchanged. See e.g. this 2019 article &quot;Inside TurboTax’s 20-Year Fight to Stop Americans From Filing Their Taxes for Free&quot;.
In many other developed countries, the quote from Vice applies: Their governments do simply calculate your taxes correctly (and automatically deduct/credit from/to your bank account the exact amounts). Most taxpayers have to do zero work (all their information on their salaries having already been automatically submitted to the government through their employer). There is also no need to bluntly withhold large and arbitrary sums.