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Reason
Reason
Joe Lancaster

Simplify the Tax Code Instead of Creating an IRS Rival to TurboTax

The Wall Street Journal reported today that "the IRS is working on steps to improve tax administration." Most notably, this would include a free, government-run tax preparation service that would allow taxpayers to file simple returns on the IRS' website. The move is opposed by tax-prep behemoths like H&R Block and Intuit, TurboTax's parent company.

Lawmakers from both parties have promised simple and/or free tax preparation for decades. In May 1985, President Ronald Reagan proposed "a system where more than half of us would not even have to fill out a return," wherein "you would automatically receive your refund or a letter explaining any additional tax you owe." In 2006, Austan Goolsbee, who later served as chairman of the Council of Economic Advisers under President Barack Obama, proposed the "Simple Return," a system of return-free filing that "might apply to as many as 40 percent of Americans, for whom it could save up to 225 million hours of time and more than $2 billion a year in tax preparation fees."

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