IN CASE YOU THOUGHT THE SPECIAL INTERESTS WERE TAKING A NAP

It’s nice to see a clear instance where government can be so cleanly bought and sold, and where our interests as citizens can be shelved by those with the cash and clout to buy better access. Check out Last week’s L.A. Times story: Free Tax E-Filing System Defeated. See, the government can’t offer a useful service for free, because it would compete with people who make money offering that service. So instead of differentiating or improving their service, or acknowledging that certain things change (buggy whips, typewriters, travel agencies), you hire lobbyists; Joseph Schumpeter is grinning hugely.

In California, where Intuit Inc. has led the industry’s effort by hiring lobbyists and making targeted campaign contributions, the private companies have successfully scuttled the Franchise Tax Board’s plans to offer a free, state-run Web site in which a computer does a taxpayer’s arithmetic.
An industry-supported bill that would ban an interactive state-sponsored electronic tax filing system is scheduled to be heard before a Senate committee Wednesday.
At both the federal and state levels, the tax agencies say they are simply trying to give people a quicker, easier way to file with the government and eliminate long lines at the post office before midnight on April 15.
Makers of tax preparation software call the government effort unwarranted competition.

If I get time later today, I’ll look up Intuit and H & R Block’s donations to CA politicians and put them up here.

One thought on “IN CASE YOU THOUGHT THE SPECIAL INTERESTS WERE TAKING A NAP”

  1. Date: 08/05/2002 00:00:00 AM
    IMO, if Congress and the IRS is going to give us such a complex tax code, they should also be providing basic tax form entry and validation software as free downloads – and publishing the source code. H&R Block, et al, can add value by writing “wizards” to make it easier to use, but the underlying data-storage & calculations code should be open-source and free (as in beer). And if the government’s programmers aren’t able to accurately translate the tax code into a computer program, I’d say the problem is the tax code…

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