Everybody loves tax prep
Tax prep in California has apparently become too easy in recent years, as the tax prep industry is lobbying to make it more difficult:
Soon after ReadyReturn was launched, lobbyists from the tax-preparation industry began to pressure California lawmakers to abandon the innovation. Their opposition was not surprising: If figuring out your taxes were easy, why would anyone bother to hire H&R Block? If the government sends you a completed form, why buy TurboTax?
But what is surprising is that their “arguments” are having an effect. In February, the California Republican caucus released a report highlighting its “concerns” about the program - for example, that an effort to make taxes more efficient “violates the proper role of government.” Soon thereafter, a Republican state senator introduced a bill to stop the ReadyReturn program.
I love the “proper role of government” argument. Lord forbid that government make things easy for its citizens. They don’t even charge for it! Clearly government’s role is to prop up industries when and if they become irrelevant.
I think Lessig’s parting comments are worth posting as well:
Free markets aren’t pro-business - they don’t favor incumbent companies if upstarts do the job better. Competition is good wherever it comes from - even the government - so long as it lowers social costs and increases wealth. And efficiency is good regardless of who it might hurt; it is especially good if it hurts those who feed off inefficiency. Thus, lawyers are good, but a world that needed fewer of them would be much better. Doctors are great, but that’s no argument against better health. And TurboTax is fantastic, but it shouldn’t prevent the government from making paying taxes easier.