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Congress is About To Ban the Government From Offering Free Online Tax Filing (propublica.org)
Just in time for Tax Day, the for-profit tax preparation industry is about to realize one of its long-sought goals. Congressional Democrats and Republicans are moving to permanently bar the IRS from creating a free electronic tax filing system. ProPublica reports: Last week, the House Ways and Means Committee, led by Rep. Richard Neal (D-Mass.), passed the Taxpayer First Act, a wide-ranging bill making several administrative changes to the IRS that is sponsored by Reps. John Lewis (D-Ga.) and Mike Kelly (R-Pa). In one of its provisions, the bill makes it illegal for the IRS to create its own online system of tax filing. Companies like Intuit, the maker of TurboTax, and H&R Block have lobbied for years to block the IRS from creating such a system. If the tax agency created its own program, which would be similar to programs other developed countries have, it would threaten the industry's profits.
"This could be a disaster. It could be the final nail in the coffin of the idea of the IRS ever being able to create its own program," said Mandi Matlock, a tax attorney who does work for the National Consumer Law Center. Experts have long argued that the IRS has failed to make filing taxes as easy and cheap as it could be. In addition to a free system of online tax preparation and filing, the agency could provide people with pre-filled tax forms containing the salary data the agency already has, as ProPublica first reported on in 2013.
"This could be a disaster. It could be the final nail in the coffin of the idea of the IRS ever being able to create its own program," said Mandi Matlock, a tax attorney who does work for the National Consumer Law Center. Experts have long argued that the IRS has failed to make filing taxes as easy and cheap as it could be. In addition to a free system of online tax preparation and filing, the agency could provide people with pre-filled tax forms containing the salary data the agency already has, as ProPublica first reported on in 2013.
This isn't capitalism at work, this is its friend cronyism.
What do you expect form the "Best Democracy money can buy."
First law of people: People are generally stupid.
It doesn't have to be "totally free" to save me money. Currently to e-file costs around $45. It's nearly a guarantee that the government can run the service cheaper than that. Virginia had a service like that nearly a decade ago and it cost them about $40k/year for the entire state. Lobbying from the tax return industry killed it and now every taxpayer in the state pays on the order of $55 each year to e-file. Millions of dollars funneled to H&R Block, Intuit, etc... because they bought off some representatives. Not once has any service saved me a dime off of my state taxes. I can't think of any money they have saved me on federal taxes either. The only reason I use them is because there is no free way to e-file if you have a middle class income.
I read the internet for the articles.
They're talking about the IRS creating tax filing software themselves, which the IRS has never done. Any free filing systems that you have used have all be created and run by third parties.
--- Here's the podcast episode. Hit play and enjoy. (I say "enjoy" as in get boiling mad.)
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This is my SIG. There are many like it, but this one is mine.
As much as I enjoy your mindless bashing of the right, have a look at the wombles in charge of this. Two of them are Democrats.
One thing I know, and that is that I am ignorant...