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I'm usually lean to the side of "keep your government paws out of the business". But taxes aren't business - it's a governmental function, and there's no reason
by smsm42 3y ago
I'm usually lean to the side of "keep your government paws out of the business". But taxes aren't business - it's a governmental function, and there's no reason why the government who levies the taxes can't also produce proper documentation for it and make the compliance easier. There could be corner cases where it's hard to do, fine - just do the easy 80% and let the business take care of the rest. Let the business also be able to check it and profit if they find a mistake. If you don't believe The Man did it right - you should be able to download the data and give it to the same Intuit folks and see if they can do better. It's just adding an easy option, I don't see anything wrong with that at all.
Intuit would do fine with it - yes, they'd lose some income, but they have more then enough other business, both in more complex taxes and other ways of organizing business, they don't need to be able to fleece every single taxpayer. In fact, if such IRS system is built, they'd probably will make a good buck by providing added value offerings to it, just as they do now for existing tax filing systems.
Even if the system to do that costs double to the high estimate - let's say $0.5B per year, given the government projects are always over cost - it's still about 0.15% of the taxes collected every year. There's no reason why it'd have any influence at all on the level of taxes collected.