More from Professor Populist

#WeThePeople #PPNewsBrief https://www.nakedcapitalism.com/2021/03/why-cant-the-irs-just-send-americans-a-refund-or-a-bill.html "In 1985, President Ronald Reagan promised a “return-free” tax system in which half of all Americans would never fill out a tax return again. Under the framework, taxpayers with simple returns would automatically receive a refund or a letter detailing any tax owed. Taxpayers with more complicated returns would use the system in place today. In 2006, President Barack Obama’s chief economist, Austan Goolsbee, premiered the “simple return,” where taxpayers would receive already completed tax forms for their review or correction. Goolsbee estimated his system would save taxpayers more than US$2 billion a year in tax preparation fees. Though never implemented, the two proposals illustrate what we all know: No one enjoys filling out tax forms. So why do we have to? ... Almost 20 years ago, Congress directed the IRS to provide low-income taxpayers with free tax preparation. The agency responded in 2002 with “Free File,” a public-private partnership between the government and the tax preparation industry. As part of the deal, the IRS agreed to not compete with the private sector in the free tax preparation market. In 2007, the House of Representatives rejected legislation to provide free, government tax preparation. And in 2019, Congress tried to legally bar the IRS from ever providing free online tax preparation services. Only a public outcry turned the tide. ... ...there is the anti-tax argument for onerous tax preparation: Keep tax preparation unpleasant to fuel anti-tax sentiment. ... Unfortunately, the anti-tax contingent’s desire to force Americans to spend time and money on tax preparation dovetails with the tax preparation industry’s desire to collect billions of dollars in fees. Tax preparation companies lobby Congress to keep tax preparation costly and complicated. Indeed, Intuit, maker of TurboTax, the tax preparation software, lists government tax preparation as a threat to its business model."
29 views · Apr 23rd

More from Professor Populist

#WeThePeople #PPNewsBrief https://www.nakedcapitalism.com/2021/03/why-cant-the-irs-just-send-americans-a-refund-or-a-bill.html "In 1985, President Ronald Reagan promised a “return-free” tax system in which half of all Americans would never fill out a tax return again. Under the framework, taxpayers with simple returns would automatically receive a refund or a letter detailing any tax owed. Taxpayers with more complicated returns would use the system in place today. In 2006, President Barack Obama’s chief economist, Austan Goolsbee, premiered the “simple return,” where taxpayers would receive already completed tax forms for their review or correction. Goolsbee estimated his system would save taxpayers more than US$2 billion a year in tax preparation fees. Though never implemented, the two proposals illustrate what we all know: No one enjoys filling out tax forms. So why do we have to? ... Almost 20 years ago, Congress directed the IRS to provide low-income taxpayers with free tax preparation. The agency responded in 2002 with “Free File,” a public-private partnership between the government and the tax preparation industry. As part of the deal, the IRS agreed to not compete with the private sector in the free tax preparation market. In 2007, the House of Representatives rejected legislation to provide free, government tax preparation. And in 2019, Congress tried to legally bar the IRS from ever providing free online tax preparation services. Only a public outcry turned the tide. ... ...there is the anti-tax argument for onerous tax preparation: Keep tax preparation unpleasant to fuel anti-tax sentiment. ... Unfortunately, the anti-tax contingent’s desire to force Americans to spend time and money on tax preparation dovetails with the tax preparation industry’s desire to collect billions of dollars in fees. Tax preparation companies lobby Congress to keep tax preparation costly and complicated. Indeed, Intuit, maker of TurboTax, the tax preparation software, lists government tax preparation as a threat to its business model."
29 views · Apr 23rd