S/V Sundance: This is what it looks like when government looks out for families, not corporate interests

Friday, October 20, 2023

This is what it looks like when government looks out for families, not corporate interests

Faith,

Big tax prep companies — like H&R Block and TurboTax — have fought and lobbied to make the tax-filing process as time-consuming and wallet-emptying as possible for you all so they can maximize profits.

They've succeeded, too. On average the tax filing process takes Americans eight hours and $140 to complete — and tax filing is a billion-dollar industry.

So for years, I've fought back. I've advocated for fast, free filing for taxpayers. Now we're one step closer: The IRS just officially announced a free pilot program launching next year — available in 13 states, including Massachusetts. Woo-hoo!

We've seen that when we fight to make our government work for working people, we win. Can you make a donation of $28 or any amount to support our re-election campaign and strengthen our movement for bold reform like this?

Let me back up and explain how we got to this point.

Every year, when your W2s come in the mail, your employer has already sent a copy to the government. Yep, they already know how much you make and owe before you file your taxes.

So the IRS could theoretically streamline the tax filing process for you by using information they already have. But tax prep companies have spent decades, and tens of millions of dollars, lobbying Washington to make tax filing as much of a hassle as possible and prevent an easy, free option.

And in this fight, Republicans sided with these giant tax prep companies, demanding that the IRS stop "competing" with private companies. (Please.)

So these companies and their lobbyists brokered a deal — a deal that was good for them, and lousy for us. They promised to offer low-income Americans free tax prep software, and in exchange, the IRS wouldn't make a free filing program of their own, for everyone.

Here's the thing: These companies purposefully undermined their own free filing options — hiding them from search engine results and using slick designs and upsell tactics to trick taxpayers into paying more.

So I urged the IRS to make actual free and easy filing a reality — in legislation, in hearings, in letters, in explainers, you name it. Supporters like you also raised your voices — in petitions, on social media, in messages to elected officials, and more.

And last year, we made huge progress in this fight. Democrats included funding for the program in the Inflation Reduction Act, and the next year, the IRS announced they'd launch a pilot program.

But the tax prep giants sprang into action as soon as the IRS announced this program. They hired fancy lobbyists. They launched a slick campaign to stop this from happening. And MAGA House Republicans pushed back too — because they wanted to look out for these rich corporations.

But we kept pushing back. And now, finally, the IRS is moving forward with the pilot program, and it has announced that a number of taxpayers in 13 states — including Massachusetts — will be able to use the program to file tax returns digitally and free of charge in the 2024 tax season. Sometimes, fighting for change like this feels like pushing a boulder up a never-ending hill. But if you keep going, and going, and going, you finally glimpse sunlight streaming over the top of the hill — and you know you're making progress.

This is what it looks like when government looks out for families, not corporate interests — and this is what we can achieve when we stay in the fight. Side by side.

Thank you for everything you do to help make big, structural change that touches people's lives. And if it makes sense for you right now, please pitch in with a donation to help show the momentum behind our movement right now.