1. What would the Taxpayer First Act do?
- The Taxpayer First Act would prohibit the IRS from creating an online tax preparation system that would compete with TurboTax and H&R Block.
2. Who are the sponsors of this bill?
- House: Democratic Rep. John Lewis and Republican Mike Kelly
- Senate: Finance Committee Chair Chuck Grassley and Ron Wyden
3. Why are these Congressmen pushing for this bill?
- They are pushing for the bill because of the amount of money that tax preparers have spent lobbying to Congress.
4. Why would the IRS easily be able to compete with TurboTax and HR Block?
- The IRS would easily compete with TurboTax and HR Block because it is free and also it would prepare taxes automatically for the vast majority of Americans for whom it has all the required information.
5. What do countries in Europe do differently to help people file their taxes?
- These countries in Europe have pre-populated returns where the filer can choose to send it in or do it by hand themselves.
6. What reforms did both Barack Obama and Ronald Reagan propose regarding filing taxes?
- Under Obama, “The Simple Return” was proposed in 2006, providing pre-populated returns for everyone not itemizing their deductions.
- Under Reagan, he also proposed return-free filing, basically the same idea.
7. Why does anti-tax advocate Grover Norquist support the Taxpayer First Act?
- He opposes automatic filing because it makes tax season not actually that bad, which might reduce people’s aversion to taxes, which in turn makes it easier for politicians to increase taxes.
