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Intuit, a private firm that manufactures TurboTax, has pushed California lawmakers to eliminate the popular, successful, and cost-effective public tax filing services, ReadyReturn [1] and CalFile [2]. These two programs offer millions of low- and middle-income Californians a free and reliable method to calculate and file taxes. They are also wildly popular [3] - ReadyReturns's user satisfaction rate reaches above 98 percent. The state's Franchise Tax Board estimates [4] that in total, ReadyReturn and CalFile save taxpayers between $4 million and $10 million in filing fees and reduces the state's processing and administrative costs by $500,000 a year. Considering the depth of the state's fiscal and economic woes, these savings are sorely needed.
Intuit has spent over $1.25 million in the past five years on lobbying efforts to kill the programs and provided right-wing politicians with over $2 million in campaign support. Their efforts have had a visible impact: conservative state lawmakers have withheld support [4] for domestic violence shelter and police department funding in an attempt to force the elimination of the programs.
In their crusade against government and public structures, the anti-tax movement [5] is joining the opposition to these types of tax preparation programs because a dependable, popular, and cost-effective government service does not suit their hackneyed and hollow messaging.
As Professor Dennis J. Ventry Jr. of the UC Davis School of Law notes [4], "[a]bolishing ReadyReturn and CalFile would hurt Californians. Intuit's alternative would cover fewer taxpayers and provide fewer services; it would cost individuals millions of dollars in preparation fees (much of which Intuit wants to pocket); and it would kill two programs that actually save the state money. It doesn't add up for anyone. Except Intuit." Accordingly, this effort to eliminate a successful government program that saves money and assists millions of taxpayers follows the pattern of right-wing behavior [6] at both the state and federal level -- placing the interests of large corporations and the very wealthy over middle class families and effective economic and fiscal policy.
Resources
California Budget Bites - Summer Doldrums Reveal Yet Another Threat to Ready Return [3]
Progressive States Network - Right-wing Budget Hypocrisy: Taking Recovery Funds, Denouncing Deficits and Promoting Costly Tax Cuts [6]
The Los Angeles Times - Intuit just won't quit [4]