Hacker News new | ask | show | jobs
by malshe 103 days ago
> The IRS already has your W-2s, your 1099s, your brokerage statements. It knows the tax rules. For most Americans, the government could calculate their tax bill, send them a pre-filled return, and let them approve or dispute the result. This is how it works in the UK, Japan, Germany, and dozens of other countries. The reason it doesn’t work that way here is that Intuit and H&R Block have spent decades and hundreds of millions of dollars ensuring it doesn’t.

This is crony capitalism and both the political parties are fine with it

2 comments

One political party created the free IRS Direct File program, a popular new technology that allowed anyone to file their taxes directly with the IRS. The other political party dismantled IRS Direct File immediately upon taking power.

Imho, the fact that you can probably guess which party is which is some evidence that the cliche that both parties are the same isn't really true anymore.

Direct File is a bandaid. What they should be doing is what other developed countries are already doing - sending the tax invoice to taxpayers.
That doesn't give an opportunity to correct errors that exist in forms. Forms often give erroneous information or leave out details. Some forms or deductions may get skipped altogether. For these reasons, people can't just be sent an invoice. Direct File was appropriate.
Our effective system of government basically is crony capitalism. Those who contribute the most to bringing the political party and administration in power reap the most rewards.