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TurboTax’s 20-Year Fight to Stop Americans from Filing Taxes for Free (propublica.org)

1519 points by danso · 2555 days ago · 447 comments on HN

Article summary

Intuit, the company behind TurboTax, has been waging a 20-year campaign to prevent the US government from making tax filing free and easy for Americans. The company has used lobbying, the revolving door, and 'dark pattern' customer tricks to fend off government attempts to create a free filing system. Intuit's efforts have been successful, with the company's profits driven largely by its tax preparation product. The US government has instead partnered with Intuit and other commercial tax prep companies to offer free filing to lower-income taxpayers through the Free File program.

Main themes

  • tax filing
  • lobbying
  • regulatory capture
  • corporate influence
  • tax code complexity

What commenters say

  • Intuit's lobbying efforts are primarily focused on maintaining the complexity of tax filing, rather than the tax code itself.
  • The company's actions are driven by a desire to protect its profits, which are heavily reliant on tax preparation services.
  • Other companies and special interest groups also benefit from the complexity of the tax code and lobby to maintain it.
  • The US government bears ultimate responsibility for the complexity of the tax code and should be the primary target of reform efforts.
  • Intuit's use of 'dark patterns' and deceptive marketing tactics is a major concern and undermines the integrity of the tax filing process.
  • The Free File program is inadequate and has been manipulated by Intuit to limit its effectiveness and funnel users into paid services.
  • Some commenters argue that the article overly focuses on Intuit and neglects the role of other actors in maintaining the complexity of the tax code.
  • Others see Intuit's actions as a particularly egregious example of regulatory capture and rent-seeking behavior.