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Instead of 70 percent of Americans receiving free tax preparation, commercial companies whittled that percentage down to 3 percent. Exasperating tax preparation, according to this argument, helps keep the anti-tax fever high. Tax preparation companies lobby Congress to keep tax preparation costly and complicated. I see America’s costly and time-consuming tax reporting system as a consequence of its relationship with the commercial tax preparation industry, which lobbies Congress to maintain the status quo. And that fuels public hate for government and the tax system. Indeed, Intuit, maker of the tax preparation software TurboTax, has listed government tax preparation as a threat to its business model. This TV model has redefined television recreation. But taxpayers already know what information forms the government has because they receive duplicates of those forms. Not true. The agency responded in 2002 with “Free File,” a public-private partnership between the government and the tax-preparation industry. The public part of Free File consists of the IRS herding taxpayers to commercial tax-preparation websites. According to the Treasury Inspector General for Tax Administration, which oversees IRS activities, private partners use computer code to hide the free websites and take unsuspecting taxpayers to paid sites.

As part of the deal, the IRS agreed not to compete with the private sector in the free tax preparation market. And in 2019, Congress tried to legally bar the IRS from ever providing free online tax preparation services. One argument from commercial tax preparers is that taxpayers will miss out on valuable tax savings if they rely on free government preparation. If the government prepared everyone’s tax returns, I believe more of that 20 percent would receive government support. Furthermore, 95 percent of American taxpayers receive at least one of more than 30 types of information returns that let the government know their exact income. These information returns give the government everything it needs to fill out most taxpayers’ returns.S. Taxpayers with more complicated returns would use the system in place today. Under the framework, taxpayers with simple returns would automatically receive a refund or a letter detailing any tax owed. Should a taxpayer discover a free preparation alternative, the private preparers impose various restrictions such as income or the use of various forms as an excuse to kick taxpayers back to paid preparation. ProPublica reported in 2019 on the company’s 20-year fight to prevent the government from making tax filing simple and free for most citizens.

In fact, the government software would reflect the same laws used by the paid preparers with the same access to tax saving deductions or credits. An employed person who raids his 401(k) early is likely to be in a higher tax bracket at the time of the withdrawal than a retired person who withdraws the same amount of money, simply because the retired person is likely to have less income. The credit is so complicated that 20 percent of the people who are eligible never file, thus missing out on thousands of dollars in savings. In 2018, a diary from Hirohito’s imperial chamberlain, Shinobu Kobayashi, revealed the emperor was agonizing over the fact that people were blaming him for the atrocities Japan had perpetrated during the war and the preceding conflict with China. That’s part of the reason today’s Japanese textbooks omit mention of Japan’s brutality in Asia, and why there is no collective sense of guilt over the atrocities committed by Japan in World War II, as there is in Germany. But to me this raises an important question: Why should taxpayers have to navigate the tedious, costly tax filing system at all? So why do we have to?