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This is a really good point. Intuit profits off the complex tax laws, but the real beneficiaries are the wealthy. Any proposal to significantly simplify the tax laws are gonna be met with huge resistance from the rich and powerful, primarily because their taxes will certainly increase. Bezos isn't gonna allow his taxes to increase just so the rest of us can have a simplified tax code.


Not just the wealthy or tax companies. https://www.npr.org/sections/money/2019/04/03/709656642/epis... is a good episode explaining some of the behind the scenes on our messy tax situation.


This is not really true. Intuit et al. make money from pretty simple tax laws that apply to most people, who use their consumer-grade prep software. The idea was the government could prefill your taxes and for this huge segment of the population that would be it; the rich or complicated returns could still be filed by accountants and specialized software. Intuit makes a huge amount of money off these relatively simple returns though, so instead lobbied to provide "free" tax software to the same target segment. It turns out their free software is anything but and they used it as a marketing ploy to funnel poorer people to paid versions. Having the IRS predefine your taxes would be far more efficient and wouldn't cost rich people any more. The tax code is complicated because of it's scale and interactions; neither impacts most of these basic returns.


Similarly big companies benefit from complex regulatory regimes that their staff attorneys can easily handle but startups can’t.




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