June 27, 2017

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Do You Trust the IRS To Do Your Taxes? We Sure Don't!

Elizabeth Warren Wants The IRS to Do Your Taxes For You!

Published Thursday, April 20, 2017
by Andrew Langer

As Tax Day 2017 fades into history, IFL wants to draw your attention to an insidious effort by US Sen. Elizabeth Warren to hand over to the IRS the power to do your tax return for you! We've collected a series of articles as to why this is a stupdendously BAD idea!

 From Reason:

http://reason.com/archives/2017/03/23/dont-let-elizabeth-warren-and-bernie-san

Don't Let Elizabeth Warren and Bernie Sanders Kill Tax Day

It's the one time of the year taxpayers are confronted with just how much of their earnings are captured by the government.

Veronique de Rugy

The deadline for filing federal income tax returns is approaching fast. While this is understandably a frustrating time for many, it's also the one time during which many taxpayers are confronted with just how much of their earnings are captured by the government. Sens. Elizabeth Warren (D-MA) and Bernie Sanders (I-VT), think that is one time too many. They want the Internal Revenue Service to prepare tax returns on behalf of taxpayers instead of leaving it as an individual responsibility.

 

This idea is pitched as a "simplification." And, to be fair, the complexity of our tax code is undeniable. It results in tax-compliance costs that can reach nearly $1 trillion annually, according to my colleague Jason Fichtner. However, the solution to this complexity isn't to add to the opacity of the system and make the cost of government even less visible to those picking up the tab. There's already too much of that.

 

First, automatic tax withholding has gone a long way to hide the amount of taxes we pay annually. Also hidden is the fact that the burden of any tax falls on—and is paid by—people, whether they be consumers, investors or workers. Different types of taxes—individual, corporate, capital gains, dividends, estate, gift, etc.—are all borne by people but not necessarily by the person who cuts the check to the IRS. It results in a fiscal death by a thousand cuts without taxpayers noticing.

 

For example, consider payroll taxes, which are withheld from paychecks. Few people realize that this is likely the biggest tax they pay. It's also sold as something other than an income tax by taxing only qualified wages. Yet, because it's withheld from wages, the same ones that are used as part of the individual income tax base when filing your taxes in April, it's just a clever way to double-tax you without you even knowing. Furthermore, its full burden is hidden by pretending that half of the burden is carried by employers (employers pay 7.65 percent; workers pay 7.65 percent; and the self-employed pay the full 15.3 percent), when in reality, the burden of the employee share is shifted to workers in the form of lower salaries.

 

As a result, without putting serious time and effort into figuring it out, it's all but impossible to tally how much is truly coming out of your pocket. The solution to this cost, however, is not to let the IRS prepare our tax returns and require nothing but a signature of approval from the taxpayer. For one thing, the government's incentive is to maximize tax collection, whereas individuals generally prefer to pay the lowest amount legally possible. And second, the IRS isn't particularly good at understanding its own rules, yet taxpayers would still be held responsible for the errors. Considering the tremendous and one-sided power held by the IRS, many would be scared to question the accuracy of an IRS-created return even if it's warranted.

 

Automatic withholding was first proposed in the midst of World War II. It was considered an emergency wartime measure to fund a greater percentage of war costs with current taxes than was done during World War I, in hopes of avoiding the same degree of inflation seen during the prior war. Free market economist Milton Friedman was a young Treasury Department employee at the time, and he even helped develop the program.

 

Friedman would later lament, "It never occurred to me at the time that I was helping to develop machinery that would make possible a government that I would come to criticize severely as too large, too intrusive, too destructive of freedom." He did it by accident, as he never wanted the program to exist during peacetime. Sens. Warren and Sanders seek to do the same today but deliberately.

 

We don't need taxpayers less involved in funding the government. For those with the goal of shrinking government and reducing taxes, the aim should be the opposite: to make the costs of big government clearer to those who carry the burden of funding it. Finally, the best way to bring about simplification for taxpayers is to implement fundamental tax reform, not give more power to the IRS.

 

From Investors Business Daily:

Senator Warren's 'Trust The IRS' Bill

The IRS proved during the 2012 Obama reelection campaign that taxpayers could not trust them. Indeed, the IRS bent over backwards to help Obama's reelection, even to the point of committing openly illegal acts.

 

It was the IRS that illegally knee capped Tea Party groups, discriminatorily holding on for years to the tax-exempt applications from Tea Party related organizations, and other "right wing" groups that apparently would oppose Obama (such as pro-Israel, pro-family, pro-life and pro-taxpayer organizations).

 

This was content based discrimination, which the U.S. Supreme Court has repeatedly held unconstitutional as a violation of First Amendment Free Speech rights.

But Senator Elizabeth Warren (Socialist, Massachusetts) proposed a bill last year, while the IRS was still stonewalling TeaPartyGate, to let the IRS calculate tax liability for taxpayers, supposedly for "free."

 

Except that Warren's legislation is not going to be free considering all the extra tax liability the IRS is going to calculate that you owe.

 

Because you can be sure the IRS is never going to be as aggressive as private tax lawyers or competing tax preparation services would be in ferreting out the maximum deductions and tax shelters available to taxpayers.

 

Taxpayers today can even get private tax preparation services to help them with their tax filings for free with online apps.

 

Based on hard experience, taxpayers would be foolish to give that up. Yet that is the first thing Sen. Warren's bill proposes to do. She proposes that taxpayers could get the IRS to calculate their tax liability for them, as long as the taxpayer discloses all their tax shelters and strategies up front.

 

That is why the bill is scored as providing an increase in revenues. Obviously, that means the IRS would not be providing a good deal for taxpayers, but taking their information in advance and using it to send them higher bills overall on net.

 

Some worry that Warren will sell this as non-controversial and try to sneak it into Trump's tax reform effort. Transparently, this would create a conflict of interest for the IRS.

 

Indeed, Congress enacted a bipartisan "Tax Free File" program in 1998 requiring the IRS to implement a "return free" option for the 70% of taxpayers with relatively simple tax filings.

 

Yet, this option remains underdeveloped almost a decade after the legislation's 2008 deadline. Today, only 3% of taxpayers use this "Tax Free File,' supposedly return free choice.

 

The National Taxpayer Advocate Office at the IRS, which represents the interest of taxpayers, has repeatedly recommended abolishing this failed option.

 

But instead, the IRS has repeatedly signed binding Free File agreements with private tax preparation companies, pledging that the federal government will "not enter the tax preparation software and e-filing services marketplace."

 

Because market-based solutions are better than government based solutions, private tax preparation services, fighting for survival in the competitive marketplace, are obviously going to give taxpayers a better deal than the IRS, supposedly serving taxpayers through an option that is already scored as increasing revenue overall.

 

Warren's bill, however, just follows the socialist motto "if the government fails once, try try again." After 20 years of failure, Senator Warren wants to try the same failure over again. Senator Cruz had a much better idea, "Abolish the IRS."

 

Ferrara is a Senior Fellow at the Heartland Institute, and at the National Tax Limitation Foundation. He served in the White House under President Reagan and President George H.W. Bush. He is also Principal and General Counsel at the Raddington Group.

 

From The Hill: 

Warren proposal would leave poor Americans to mercy of IRS

If you believe the IRS should be even more expensive, inefficient and bloated, Massachusetts Sen. Elizabeth Warren has a plan for you.

 

Last year, Warren concocted the so-called “Tax Filing Simplification Act.” The scheme actually puts the federal government in the tax preparation business. With Tax Day approaching, the senator appears to be dusting off the proposal for another go.

 

Warren’s legislation would “direct the Internal Revenue Service (IRS) to develop a free, online tax preparation and filing service that taxpayers can use to prepare and file their taxes directly with the federal government.”

 

Not surprisingly, Warren’s plan socialist-style bureaucracy has garnered the backing of socialist Sen. Bernie Sanders (I-Vt.) and several other misguided members of the U.S. Senate.

 

Apparently, Warren and her band of supporters aren’t aware of what most Americans already know: Free tax prep and e-filing services are widely available. In fact, thanks to a public-private partnership between the IRS and the tax software industry, 70 percent of all Americans already have access to free tax preparation and filing. The federal bureaucracy created by Warren’s bill would obliterate these successful partnerships.

Clearly, Warren’s proposal is little more than a solution in search of a problem.

 

What actually is a problem, however, is the clear conflict of interest created by the proposal. The IRS exists for the purpose of collecting taxes – and snagging as much tax money as possible in the process. Putting the agency in charge of tax preparation creates serious concerns over how the IRS could possibly look out for the best interest of Americans on its tax prep side when its overall goal is to squeeze every last dime out of taxpayers.

 

It creates a scenario where the fox is guarding the henhouse. And it will harm poorer taxpayers the most.

 

Wealthier Americans will be able to continue to hire tax attorneys and accountants to reduce their tax burdens. Because Warren’s proposal would kill the market for free and low-cost tax prep solutions, however, lower income Americans would be out of luck. Their only option will be to rely on the IRS to try to lower their tax bill – to the IRS.

 

Good luck with that.

 

Thanks to private competition, a rich marketplace of options currently exists for Americans hoping to prepare and file their taxes at little or no cost. The Tax Filing Simplification Act won’t improve those options. In fact, it will dry them up, forcing taxpayers to rely on a stale federal bureaucracy that will be motivated to collect more in taxes, not protect them from being overtaxed.

 

If Warren actually wants to make it simpler for Americans to file their taxes, she’s going about it all wrong. Rather than adding another layer of bureaucracy to the already bloated and wasteful IRS, she should consider pushing comprehensive tax reform efforts that would make taxes fairer and less burdensome. And she should embrace, rather than destroy, the exciting array of solutions already available for Americans looking to do their taxes on the cheap.

 

When it comes to simplifying taxes, making the IRS even more expensive, less efficient and more menacing is never the right solution. 

 

Drew Johnson is a senior scholar at the Taxpayers Protection Alliance.

 

From Forbes: 

Tax Reform Should Not Nationalize Tax Preparation And Hit Tax Prep Stocks

Feb 21, 2017 @ 06:46 AM

 

Voluntary compliance is the foundation of our American tax system and allows companies in the private sector to help taxpayers while making some profit. There are ideas being floated as part of comprehensive tax reform that would chip away at that foundation.

 

As any taxpayer knows, this is the time of year when taxpayers are inundated with advertisements from companies like H&R Block, Intuit and its TurboTax offering, Jackson Hewitt and the litany of accountants that offer expertise in tax preparation. They promise early refunds and help taxpayers navigate the murky waters of the tax code. Their charge is to help taxpayers pay only the amount they owe and no more in exchange for their services and fees.

 

Many in government are perplexed the private sector has found a way to help what they term as “tax avoidance” and these companies charge taxpayers for the work these companies do to help the taxpayer prepare taxes every year. Sen. Elizabeth Warren (D-MA) and several other progressive Senators are pushing an idea as part of comprehensive tax reform that will hurt taxpayers and give government more power.

 

On April 16, 2016, Sens. Warren, Bernie Sanders (I-VT) and seven other members introduced a measure called the so-called “Tax Filing Simplification Act of 2016.” The bill would “direct the Internal Revenue Service (IRS) to develop a free, online tax preparation and filing service that taxpayers can use to prepare and file their taxes directly with the federal government, if they choose to do so, and would prohibit the IRS from entering into agreements that restrict its ability to provide free online tax preparation or filing services.” Sounds great, but ask almost any tax payer and they’re likely to say this is a solution in search of a problem.

 

One of the biggest problems with this idea is that it creates an avoidable conflict of interest. If the IRS is converted from a tax administration, collection, and enforcement to an institution that conducts the tax preparation and collection, then an obvious conflict of interested would be created. The goal of the taxpayer is to pay the least amount possible while the government has an interest in forcing the taxpayer to pay the highest possible amount. A bill that promotes a simplified way to file taxes would undermine the American system from delivering fairness.

 

The Trump Administration and Republicans in Congress should not be attracted to this idea, even if it does raise revenue, because this will end up being a regressive tax that will hammer lower middle income and poor people the hardest. The wealthy will be able to hire tax lawyers to work through complex legal issues with voluntary compliance preserved, while less well-off taxpayers will have to hire the tax collectors to help them fill out their annual tax forms. That seems unfair.

 

Another reason why this is a fundamentally terrible idea is that it will destroy all of the tax compliance companies and small businesses that have sprung up to help taxpayers avoid tax problems with the federal and state government as well as their employees. Private enterprise has solved the problem by charging a moderate fee to help taxpayers save money and find every deduction available in the tax code. These businesses are responsive and on the ball when taxpayers need help. The same cannot be said of government bureaucrats who will not have an incentive to help taxpayers with difficult questions.

 

Finally, there are already a number of Free File programs already offered by the likes of H&R Block, TurboTax, Liberty Tax and TaxAct to taxpayers who want to use them. Rather than create a conflict of interest at the IRS by, Senators Warren and Sanders should stand down because they are trying to solve a problem that does not exist.

 

From The Washington Examiner: 

Keep the IRS out of tax preparation

 

By ANDREW QUINLAN • 3/2/17 7:00 PM

 

With President Trump in office and Republicans in full control of Congress, the prospects for major reforms to the tax code are the highest they've been since the Reagan era. Reform might not only mean lower tax burdens on individuals and businesses, but it could also lead to changes in how taxes are filed and collected. One idea Republicans should absolutely avoid is expanding IRS power to prepare tax returns on behalf of taxpayers.

 

Sen. Elizabeth Warren, D-Mass., and Sen. Bernie Sanders, I-Vt., have said the IRS should engage in its own tax preparation services, similar to those offered by private companies, though the IRS would make it available for free. This may sound like a reasonable idea, but it is rife with problems. Chief among them is the huge conflict of interest it would create for the IRS. The IRS exists to collect tax revenue for the government. It answers to the president and Congress, both of whom are primarily concerned with raising money to fund government programs. In contrast, tax preparers answer to their customers, who are interested in paying as little tax as legally possible.

 

These two objectives are clearly at odds. Preparation work done by the IRS is likely to reflect their organizational agenda, not that of taxpayers. This will lead to higher than necessary tax payments on average, making this proposal a de facto tax increase. That's the opposite of what Congressional Republicans should hope to achieve with this year's reform effort.

 

There is also reason to question the ability of the IRS to competently accomplish the task of preparing tax returns. For decades, studies have found that IRS help centers provide an unacceptably high rate of false information when responding to taxpayer questions. The agency also has a history of overcharging interest and other fees.

 

Private tax preparation companies obviously make mistakes, too. After all, the tax code is extremely complex. But competition for customers gives them strong incentive to invest in getting it right. A preparation program run by the IRS, however, would have no such incentive and would make it harder for private solutions not subsidized by the government to fairly compete.

 

Finally, it's vitally important to maintain our system of voluntary tax compliance. Voluntary in this case doesn't mean that compliance is optional, but rather that the IRS does not directly assess taxes against each individual nor audit every single return. The key benefit of this system is that taxpayers are exposed to the cost of the tax code as they fill out their forms each year. Though there is room for improvement to make the full costs of the tax system more transparent, taxpayers generally see first hand how much taxes are impacting them, which is useful information when entering the voting booth.

 

While announcing her proposal, Warren suggested that it should be made easier for Americans to file their taxes. On that point, she is entirely correct. However, simplifying the tax code is the best way to do that, not to grant the IRS even more control over individual tax returns. The standing separation between tax collection and compliance services needs to be maintained.

 

Andrew F. Quinlan is the co-founder and president of the Center for Freedom and Prosperity (@cfandp).

 

From Inside Sources:

A More ‘Efficient’ IRS

Eric Peters

 

Anything that makes things “easier” and “more efficient” for those collecting taxes is probably not a good thing for those paying the taxes.

 

Not surprisingly, Elizabeth Warren — and Bernie Sanders — are all for it.

 

They have put forward legislation — the Tax Filing Simplification Act — that would require the IRS to “help” taxpayers not just file but figure their taxes.

 

It’s being touted as a convenience and money-saver for all. Instead of paying an accountant or buying tax software like TurboTax, the IRS would do your prep work “free.”

 

The model — which Warren and Sanders almost certainly know about — is Sweden, a socialist country in which taxpayers are simply sent a form for them to sign that tells them what the government thinks they owe.

 

And then they pay.

 

No more loopholes for the taxpayer. Instead, the noose.

 

Sanders, of course is an out-of-the-closet socialist from Vermont and Warren is an extremely left-wing Democrat from Massachusetts — one of the highest tax states in the country and the first state to force its citizens to purchase a health insurance policy.

 

The homunculus that grew up into Obamacare was born in Warren’s state — and now comes another Great Leap Forward.

 

First, don’t bank on this “service” remaining “free” for very long.

 

The government charges for everything, most especially things you can’t say No to. Think about, for example, the “processing fees” you get charged whenever you get a traffic ticket or apply for a permit or license.

 

Many state governments already charge a fee to file taxes, if not paid in the manner they demand (e.g., online rather than by check).

 

If the IRS takes over tax preparation as well as tax collection and enforcement, where will the staff to do the extra work come from?

 

Will they work for free?

 

It’s moonshine to think the government will handle all our tax prep work and not make us pay. Whether on the front end — or some other way.

 

The Warren-Sanders legislation, if it becomes law, will result in IRS demands for more staff — and a larger budget.

 

More taxes — to collect more taxes.

 

A win … for the IRS. And for socialists like Sanders and socialists-in-all-but-name, such as Warren. In their view, it’s all the government’s money anyhow; the government, therefore, ought to be the one deciding how much we’re allowed to keep (if any).

 

Keep in mind: Right now, you don’t have to pay an accountant or buy tax software; you can save 100 percent of that money by doing your taxes yourself, as many people still do.

Under the Warren-Sanders plan (liberal Democrats always have plans for us, don’t they?) the option to say No Thanks to the IRS’ “help” will almost certainly go the same way the ex-right to say No Thanks to buying health insurance went.

 

Away.

 

But won’t it be convenient to let the IRS do all the work? Sure, just as it would be convenient to let the waiter figure your tip the next time you go out for dinner.

The conflict of interest ought to be obvious. Like the waiter figuring his tip, the IRS is interested in getting the absolute maximum out of every taxpayer. Exactly the opposite motivation of a tax accountant hired by you — or the people who write TurboTax and similar software.

 

They work for you.

 

You pay an accountant to ferret out every legal way to reduce the amount of tax you pay. Same goes for the software; it is designed to benefit you — not the IRS.

 

The IRS, on the other hand, is not looking for ways to reduce the amount you owe. It will use every means available to maximize the amount you owe. Instead of looking for deductions and exemptions, the IRS will be doing its best to eliminate or reduce them.

 

Warren and Sanders expect us to believe otherwise. Might as well believe in the Tooth Fairy.

 

Putting the IRS in the business of tax preparation would also end the concept of voluntary compliance, a linchpin of the concept of government by consent. Americans choose to file their taxes. They have a say in what their taxes will be. In Sweden and other socialist countries, the people funding socialism have no say at all. The government simply decides how much it will take — end of story.

 

That’s what Warren and Sanders have in mind for us.

 

Certain things should not be streamlined and made more efficient — most particularly tax collection. Just as it ought not to be easy to convict people of crimes.

 

The Warren-Sanders legislation is a proposal to make what is rightly the most feared agency of the federal government much more powerful — and far less accountable.

Warren-Sanders think we — the taxpayers — ought to just trust the IRS to be “fair” because (in the Warren-Sanders universe) whatever the government does to taxpayers is always fair.

 

Except when it isn’t — as when the IRS was caught deliberately targeting certain taxpayers whose politics it doesn’t like.

 

The IRS, like any other government agency, is run by people — and people sometimes harbor grudges and misuse power. Warren and Sanders’ proposed legislation would not only give the IRS more power, it would be power largely unchecked; the fox guarding the henhouse.

 

The current system serves as a check on the power of the IRS; accountants and tax software working for us, making sure we only pay what we’re obliged to pay, as opposed to what the IRS believes we ought to pay.

 

And without voluntary compliance, paying taxes becomes not much different from a legal mugging. That may be what Warren and Sanders want for America, but it’s probably not what most Americans want for themselves.

 

From Clash Daily:

http://clashdaily.com/2017/02/tax-trap-warrens-offer-benevolent-trail-tears/

TAX TRAP: Warren’s Offer Is As ‘Benevolent’ … As The ‘Trail Of Tears’

Written by S.C. Sherman on February 25, 2017 

Democrat darling, Senator Elizabeth “Dances with Lies” Warren, is famous for lying on CNN that she is part Native American when in fact she is as white as white gets. To add insult to injury, she is not only NOT of Indian descent, her Great, Great, Grandpappy Crawford actually rounded up the Cherokee in North Carolina, Tennessee, and Georgia to help them on their way west in what became known as “The Trail of Tears”.

Now Sen. Elizabeth Warren has a piece of tax reform legislation that would put the entire country onto a whole new path to destruction. She claims her idea will both increase revenues and help middle income and poor people. I’m sure her Grandpappy told the Cherokee it would be real nice on that reservation in Oklahoma, too. 

Lookout…this is an ambush.

Sen. Warren has teamed up with Sens. Bernie Sanders (I-VT), Al Franken (D-MN), Sheldon Whitehouse (D-RI) and five other left wing Senators to gut the voluntary compliance system that America has used to collect taxes for generations. Sen. Warren and her band of followers want to allow the tax collector to fill out tax forms. This is more than a simple conflict of interest. This idea is fundamentally un-American.

Voluntary tax compliance is the cornerstone of the American tax system. It is a taxpayer right and the basis of our entire system, which many feel is bloated beyond all recognition as it is. Their plan increases the power of the IRS and expands government’s role in the lives of Americans. The IRS would no longer simply enforce our tax law; it would also take on the role of tax preparer as well. The IRS would prepare the tax documents for the people they are collecting the taxes from. With such an obvious conflict of interest there is no way this idea could portray itself as fair.

Tax collectors preparing the tax forms for Americans may boost revenues in the short term, but the corrosive long term harm to freedom is significant. Not all ideas that boost revenues are a good idea.

The most likely people to use this program right away would be middle and low income Americans hoping to save a few bucks on the front end. Yet the motivation of the government tax preparers would not be tax-paying avoidance; the motivation would be maximizing the amount the taxpayer pays to the government.

Why demonize the many companies helping Americans prepare their taxes? I use an accountant and I am happy that my accountant is not a secret agent for the IRS. A friend of mine swears by TurboTax and he says that it is “idiot proof”, meaning even I can figure it out. Other people use H&R Block to help them file the taxes. All of these methods provide the needed separation between tax preparer and tax collector.

The most insidious element of this idea is that it will raise money for the federal government by hurting the middle and lower class people they are claiming to be helping. The ironic part of this scheme, and it is a scheme, is that this would essentially raise taxes on middle income and poor people by having government workers fill out tax forms resulting in higher taxes. The politicians will then use these increased revenues to cut taxes elsewhere and some of those tax cuts will go to the evil “rich” the Democrats love to demonize. 

Sens. Bernie Sanders and Elizabeth “Fauxcahontas” Warren espouse their love for the poor while making their lives harder every day.

Don’t be fooled. Let’s not destroy the tax system just because a handful of progressive Senators hate the idea of private tax preparers making some money by helping every day Americans avoid paying too much the IRS.

It’s laughable. Haven’t these Senators heard the old joke, I’m from the IRS and I’m here to help. This could go down as one of the worst ideas, since well, The Trail of Tears.

Share if you agree this is bad tax reform idea.

 

From The American Thinker: 

 

Fauxahontas Proposes an IRS Takeover of Tax Preparation

 

The yearly ritual of submitting tax returns to the Internal Revenue Service (IRS) may not be something most of us look forward to doing, but do we really want the federal government to do it for us?

 

Sen. Elizabeth Warren (D-MA) has proposed legislation that would require the IRS to offer you the convenience of doing your taxes for you. The actual bill would require the IRS to create programs that help taxpayers process and file their federal taxes for free. Sen. Warren says taxpayers spend, on average, 13 hours and about $200 for tax preparation services to file their tax returns. Of course, this is unnecessary (if not misleading), as there are plenty of free services available to most Americans.

Having the IRS take over the process of filing our tax returns is not an idea that will make America great again. Our tax system is based on the concept of voluntary compliance, and hollowing this out by replacing it with a government-run tax preparation system moves the IRS from a tax administration, collection, and enforcement agency on to giving “advice” to the people it’s taking money from -- a clear conflict of interest.

 

How long before such "advice" becomes mandatory?

 

Can American taxpayers trust the same government agency that wants as much of their money as possible to also decide which benefits and deductions they will receive? Even if such a system were convenient and free, would we really want it?

Sen. Warren's office claims that the IRS's Free File program is available to 70 percent of taxpayers, yet only three percent of those eligible actually use the program. Leave it to the government to figure out a way to offer something for free that hardly anyone thinks is worth using. Perhaps that is because the private tax software companies, who offer free electronic filing service to lower-income taxpayers, have figured out how to offer low cost and free services that are more user friendly for taxpayers.

 

Voluntary tax compliance is an important principle. Its intellectual roots trace back to the founding of our Republic. A government-administered system of tax preparation, which would target low income and lower middle income Americans, should not be added to any comprehensive tax reform that might pass Congress. Such a system would clearly undermine any notion of delivering fairness in implementing our federal income tax.

 

Our current system gives taxpayers many choices as consumers, and allows for the implementation of federal income taxes in a voluntary manner. Legislation such as that proposed by Sen. Warren would eliminate consumer choices in tax preparation.

Consumers expect a lot of things from tax preparation software and websites, including accuracy. They want to know that the program they use advises them of all available deductions and tax breaks and that they get those deductions and tax credits. Taxpayers also expect the programs to be very user friendly and secure in handling their personal financial information.

 

Should consumers trust the same IRS, that discriminated against some political groups because of the views they espoused, to also be fair and judicious in the handling of their personal financial information?

 

Consumers also expect quality help and customer service from the provider of their electronic tax filing products and services. Good luck getting that from the IRS.

 

The same federal government that will appear to be “helping” you by doing your tax returns for you is the same federal government that will soon take over the process entirely doing your taxes in a way that benefits the government. When it's too late, you will realize this is help from the government you will regret accepting. The “free” government tax processing service will lack the convenience, security, features, and accuracy you've come to enjoy from the private services currently available.

 

Congress should reject the Warren bill, co-sponsored by Bernie Sander (D-VT) and six other Democratic senators, because there are better alternatives currently available.

 

Market-based solutions are always better than giving the government even more power and competing with private tax software and service providers that help Americans file their taxes easily, securely, and without violating a conflict of interest. Private tax return services are vital parts of the marketplace and they have been innovators as opposed to the stale federal bureaucracy that will be motivated to collect more in taxes, not protect the taxpayers from being over taxed.

 

Dean Chambers is a former pollster. His articles have been featured on the Drudge Report and The Rush Limbaugh Program.

 

From The Tea Party Command Center

 

Fauxahontas Proposes an IRS Takeover of Tax Preparation

Posted by National Director, Dee on February 21, 2017 at 6:11pm in Liberals/Leftie Loons/Progressives

 

 

The yearly ritual of submitting tax returns to the Internal Revenue Service (IRS) may not be something most of us look forward to doing, but do we really want the federal government to do it for us?

 

Sen. Elizabeth Warren (D-MA) has proposed legislation that would require the IRS to offer you the convenience of doing your taxes for you. The actual billwould require the IRS to create programs that help taxpayers process and file their federal taxes for free. Sen. Warren says taxpayers spend, on average, 13 hours and about $200 for tax preparation services to file their tax returns. Of course, this is unnecessary (if not misleading), as there are plenty of free services available to most Americans.

 

Having the IRS take over the process of filing our tax returns is not an idea that will make America great again. Our tax system is based on the concept of voluntary compliance, and hollowing this out by replacing it with a government-run tax preparation system moves the IRS from a tax administration, collection, and enforcement agency on to giving “advice” to the people it’s taking money from -- a clear conflict of interest.

How long before such "advice" becomes mandatory?

 

Can American taxpayers trust the same government agency that wants as much of their money as possible to also decide which benefits and deductions they will receive? Even if such a system were convenient and free, would we really want it?

 

 

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