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Congress Is About to Ban the US Government from Offering Free Online Tax Filing

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481–490 of 717 posts

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#481
post #317

Earlier quoted context omitted.

Yes, you're right that people in that camp are unlikely to review their tax filings from their 3rd party. However there is an incentive for that 3rd part tax company to save their customer as much as they possibly can. The bigger the refund, the happier the customer and the more likely they are to come back next year and give you more money. In the Planet Money episode they spoke with the Republican dude and his bigg…

If private tax filing products saved money for their users, as compared to a hypothetical, IRS-produced product, what are these companies worried about? They'd have a clear competitive advantage over the IRS product.

How could they save money, though? The tax code is the same in both cases, and most people's financial lives are not complicated enough to make it any kind of challenge to get the best refund.

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#482
post #421

Earlier quoted context omitted.

A better way to do 2 would be to do away with withholding. After a year of that we’d see a radically different tax system.

I've always thought it would be better to replace the income tax with a national sales tax. Then, for those who earn less and have to spend a greater proportion of their income on essential expenses, the government would credit them through their employer's paycheck (essentially the opposite of what federal withholding is now). For those who earn more, they would receive less credit or won't receive any credit.

What's the benefit compared to what we have now?

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#483
post #469

Earlier quoted context omitted.

I will say, vote with your dollars. If you don't like Intuit's lobbying, please don't feed the beast and use their services.

I might be getting old, but more and more I see “vote with your XXXXX” to be the litmus test for situations there is no decent solution left anymore. It’s not even an advice in the end, just a reminder the customer lost the battle, and the only alternative is to leave the field with what’s left on their posession to go roam the desert.

This is beautifully written.

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#485

Earlier quoted context omitted.

Honestly if a company exists solely to solve an inefficiency they lobby to create, that’s not something I care to defend. Taxes are in the public interest and as such profit is just not a concern of mine. There’s plenty of other ways to make money than regulatory capture and rent seeking. I want the IRS to do what’s best for Americans and that is either providing a way to file free of charge or eliminating the comple…

The IRS isn't authorised to simplify the tax code, it would have to be Congress.

[deleted]

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#486
post #242

Meanwhile, in my little country (NZ), as a regular salaried worker, I only had to interact with the IRD in the years that I had a few side gigs in addition to my regular employment. Most years I don't interact with them at all. Don't even have to file. I guess in the USA they are worried the IRS will get it wrong, so on the chance they will, everyone has to follow really complicated processes, even if their tax affai…

Being your close neighbour - how do you handle work related deductions. ie. IT equipment?

If I remember correctly, I got a tax deduction for 30% of its value per year through depreciation.

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#487
post #77

Earlier quoted context omitted.

I live in Germany, which is said to have one of the most complicated tax systems known to man. If I had one (realistic) wish for a German government, it would be to do it like Finland. Sadly there is a whole branch of people working on this, without any interest to make it easier..

Just a few weeks ago, I logged into Elster, opened the pre-filled tax return (Belegabruf) and sent it. Instead, I could have filled the short and simple Vereinfachte Steuererklärung by hand which covers all common cases. Most workers don't need to do anything to get their overpaid tax back thanks to the Lohnsteuerjahresausgleich. They need to work on their marketing though.

Aldi (or Lidl) every year sell a Tax Prep software for 5 euros. Our in-laws buy a copy, install it, then pass it on to us (same key works on multiple PCs). The software's UI could use some...clarity in certain places but it is incredibly full-featured.

We've been happily using it to file our German taxes for years.

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#488

NPR's Planet Money just re-ran an episode[1] related to this. In 2005, California ran a pilot program where they sent simple, pre-filled tax forms[2] to a sample of the population. 98% of people liked them and would use them again. In 2006 it would have become standard for California, but failed in the legislature by a single vote. Opposition was from two factions: lobbying by Intuit, and Grover Norquist claiming tha…

I will say, vote with your dollars. If you don't like Intuit's lobbying, please don't feed the beast and use their services.

Those lobbyists will find ways how to force you into using their services. Not necessarily by eliminating all the different competing companies, but possibly through splitting the rewards through some kind of association, commission, self-regulator etc. If somebody is lobbying against you, fight them, don't just wave your hand, or you might lose your chance to "vote with your dollar" soon

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#489

Earlier quoted context omitted.

Politicians don’t put the bribes in their pockets. They put them in their re-election campaigns because without those bribes they will get voted out of office by The People in favor of an opponent with a larger, bribe-based ad budget. They don’t want the bribes, they need them just to stay in power. In return, the real goal of “access” is to hear what the bribing company wants written into law or else the bribes will…

> Politicians don’t put the bribes in their pockets. Yes, they do. All the time. > They put them in their re-election campaigns because without those bribes they will get voted out of office by The People in favor of an opponent with a larger, bribe-based ad budget. You kind of fail at corruption if you are getting bribes many times the annual salary of a job per year and are feeding them into nothing more than keepi…

> Yes, they do. All the time.

Can you point us to some documented examples?

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#490

Earlier quoted context omitted.

Sorry, but it is that simple. We live in a second gilded age with near total regulatory and legislative capture and trying to soft pedal it by using euphemisms like 'strong networks' does not obfuscate the fact that this is a commercial relationship between bought politicians and the corporations that buy them. In the face of overwhelming pieces of evidence, year after year after year like the article being discussed…

I absolutely disagree. There is a difference between quid-pro-quo corruption and what we have now. And there are important differences in the way you architect a system to prevent one vs. the other.

I think it's because you're are defending your point from a deontological point of view, while the person you're responding to is arguing from a consequentialist point of view.

For a consequentialist, arguing on the ethics of the acts leading to the consequence is moot (and I think he's quite right that from a consequences point of view, the situation is hard to distinguish from quid pro quo corruption).

Of course, I'd love to see you too reconcile Kant and Machiavel, but you're fighting bad odds here ^^

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