Tax prep companies spend millions lobbying to keep taxes complicated


Tax prep companies like TurboTax and H&R Block have what you might call a vested interest in U.S. tax policy — and, specifically, in ensuring it stays complicated enough that their services remain necessary for millions of Americans.
In 2016, ProPublica reports, these two companies alone spent a combined $5 million on lobbying efforts, a portion of which opposed "return-free filing," a system in which the IRS would generate pre-completed income tax returns for many Americans who have a fairly simple tax-filing process.
Return-free filing has been discussed but not realized in Washington for decades. "Comparing the distance between the present system and our proposal is like comparing the distance between a Model T and the space shuttle," then-President Ronald Reagan quipped in 1985. "And I should know — I've seen both."
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Pre-populated returns could be available to about 60 million Americans, especially those who work at a single job that issues them a standard W2 form that they file along with the standard deduction. For contract workers who file 1099 forms or those with more complicated employment and deduction situations, manually filing taxes (and, for many, using tax prep services or software) would remain necessary even if return-free filing were implemented.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Bonnie Kristian was a deputy editor and acting editor-in-chief of TheWeek.com. She is a columnist at Christianity Today and author of Untrustworthy: The Knowledge Crisis Breaking Our Brains, Polluting Our Politics, and Corrupting Christian Community (forthcoming 2022) and A Flexible Faith: Rethinking What It Means to Follow Jesus Today (2018). Her writing has also appeared at Time Magazine, CNN, USA Today, Newsweek, the Los Angeles Times, and The American Conservative, among other outlets.
-
5 artfully drawn cartoons about Donald Trump's Epstein doodle
Cartoons Artists take on a mountainous legacy, creepy art, and more
-
Violent videos of Charlie Kirk’s death are renewing debate over online censorship
Talking Points Social media ‘promises unfiltered access, but without guarantees of truth and without protection from harm’
-
What led to Poland invoking NATO’s Article 4 and where could it lead?
TODAY'S BIG QUESTION After a Russian drone blitz, Warsaw’s rare move to invoke the important NATO statute has potentially moved Europe closer to continent-wide warfare
-
New York court tosses Trump's $500M fraud fine
Speed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year