4.6 • 8.7K Ratings
🗓️ 16 April 2019
⏱️ 15 minutes
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0:00.0 | So Monday was tax day, but in the week's frenzy of gathering your receipts and getting a return to the post office in time, |
0:08.2 | you may have missed the important tax news that happened in Congress on April 9th. |
0:13.1 | The House passing the Taxpayer First Act. |
0:16.5 | It is a bipartisan bill that would permanently ban the IRS from offering its own free electronic tax system. |
0:22.8 | The Taxpayer First Act is a big fat government handout to H&R Block, Intuit, and the rest of the for-profit tax prep industry. |
0:32.8 | Through an agreement with the IRS, they currently offer free tax filing services to those taxpayers making less than |
0:39.7 | $66,000 a year. But clicking on that option yields aggressive upselling that attempts to bait |
0:47.1 | and switch users away from the free offer. H&R Block has spent $3.4 million lobbying the Congress into it, which makes |
0:56.5 | turbotax, has given $3.1 million, and their voices were heard. For the second straight |
1:04.5 | year, the bill has sailed through the House. But before the Senate voted last year, there was an intervention by tax scholar |
1:13.2 | Dennis Ventry, whose opinion piece in The Hill called the free file program a scam. That bill |
1:21.2 | subsequently failed to reach the Senate floor, and how it will fare this time around remains to be seen. |
1:29.6 | Ventry is a law professor at the University of California, Davis. Dennis, welcome to O.T.M. Thank you. You've written about the |
1:35.8 | reasons you think it's a terrible idea. One is that it would turn what amounts to a promotional |
1:43.7 | come-on to permanent U.S. law. It could be called the |
1:47.9 | Tax Preparation Industry U.S. Act, huh? Well, I hadn't thought of that. I wish I had. Just |
1:55.9 | yesterday I was having a conversation with one of my students. She had used free file this year. She qualified by income. |
2:03.2 | She only had about $15,000 worth of adjusted gross income. And when she got to inputting something |
2:09.0 | about educational expenses, the particular provider software indicated that she needed to purchase |
2:14.6 | a fee-based upsell deluxe edition. When she got to her very nominal small business income, same thing. Sorry, you need to purchase a fee-based upsell deluxe edition when she got to her very nominal |
2:18.8 | small business income same thing sorry you need to purchase a deluxe edition if you want to continue |
2:24.5 | using us now the industry group the free file alliance is all for this legislation and in support of it |
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