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TurboTax’s 20-year fight to stop Americans from filing taxes for free (2019) (propublica.org)

913 points by lelandfe · 283 days ago · 470 comments on HN

Article summary

Intuit, the company behind TurboTax, has been fighting against the US government's efforts to make tax filing free and easy for Americans for over 20 years. The company has used lobbying, the revolving door, and 'dark pattern' customer tricks to prevent the government from creating a free tax filing system. Intuit's success has made its executives rich, but its business model is based on a shaky foundation that could collapse if the government were to make tax filing simple and free. The company's efforts have affected a huge proportion of the taxpaying public, with Americans spending an estimated 1.7 billion hours and $31 billion doing their taxes each year.

Main themes

  • Tax Filing Complexity
  • Corporate Lobbying
  • Government Regulation
  • Tax Reform
  • Income Inequality
  • Corporate Greed

What commenters say

  • The complexity of the tax code is a feature, not a bug, as it allows for loopholes that benefit the wealthy and large corporations.
  • A flat tax would not make tax preparation easier, as it would require a fixed sum or rate that would be unfair to certain groups.
  • The use of AI in tax preparation could potentially simplify the process, but it may also introduce new errors and biases.
  • The current tax system is designed to favor the wealthy and large corporations, and a more progressive tax system is needed to address income inequality.
  • The government should provide a free and simple tax filing system, rather than relying on private companies like Intuit.
  • The tax code is too complex and should be simplified to reduce the burden on taxpayers and make it easier for them to comply.
  • The wealthy and large corporations will always find ways to exploit loopholes and avoid paying their fair share of taxes, regardless of the tax system.
  • A flat tax with a fixed credit or exemption could be a more progressive and efficient way to tax income, rather than the current system of brackets and deductions.