There’s no reason private companies should be needed to file income tax returns. The IRS Direct File system will eventually handle all 50 states (they are ~50% there) and all but the most unique tax situations. This is a utility, not a business.
(Cash App is also likely to not survive the FedNow instant payment rollout to all US deposit accounts, tangentially)
I agree, but my point is that a completely free option already exists and TurboTax still costs a bunch of money anyway for the same thing. If you want to remove the wind from TurboTax's sails, and I do, it's been possible nationwide for the past two years.
The US has a two-party system, one of the two parties opposes this,[1] and people prioritize other issues when they vote. Would Direct File even survive a Republican trifecta?
The party that opposes efficient delivery of government services has an electorate that keeps shrinking every year through attrition. Direct File will outlive said party going through a demographic compression.
(Re: your tangent) For a lot of Cash App users, the app is their bank. They're unlikely to switch to a traditional bank just because of FedNow. Cash App will survive. Had FedNow come out a decade ago things might be different.
(Cash App is also likely to not survive the FedNow instant payment rollout to all US deposit accounts, tangentially)