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Tax prep companies: $90M lobbying against free tax-filing (opensecrets.org)

443 points by everybodyknows · 1088 days ago · 231 comments on HN

Article summary

Tax preparation companies have spent over $90 million lobbying against a free tax-filing system in the US. The companies, including Intuit and H&R Block, have been accused of using 'revolving door' lobbyists to influence policy decisions. Despite this, the IRS is moving forward with a pilot program to offer free direct filing services. The program aims to simplify tax filing for most taxpayers, who already have their necessary information on file with the government.

Main themes

  • tax preparation
  • lobbying
  • government services
  • tax reform
  • corporate influence
  • data security

What commenters say

  • The US tax system is overly complex and should be simplified to make filing easier and less painful for taxpayers.
  • The government should provide a free and direct filing service, similar to those in other countries, to reduce the need for tax preparation companies.
  • Tax preparation companies are taking advantage of the current system and using lobbying efforts to maintain their profits.
  • The Democratic party is not entirely blameless in the lack of progress on simplifying tax filing, as they have had control of Congress in the past and could have pushed for change.
  • The complexity of the tax code is a deliberate attempt to make taxes more painful and thus more unpopular, which benefits certain political ideologies.
  • Other countries have successfully implemented simple and efficient tax filing systems, and the US should follow their example.
  • The use of third-party tax preparation software can be problematic due to concerns over data access and security.