Regulation doesn’t have to mean licensure!

In my effort to become more misinformed I’ve started listening to the news. On PBS Newshour I learned that the National Taxpayer Advocate is pushing to restrict who can professionally prepare tax returns. It turns out the Institute for Justice is (so far) successfully beating back these efforts.

So why is anyone concerned? Surely because it’s poor people going to (potentially unqualified) preparers. Why not just go to H.R. Block? They’re cheap and trustworthy, but poor people probably make their decision of where to go the same way they decide how to bank. They want someone local and personal. That’s not going to change. Back to Newshour:

If you have someone who’s– who’s not ethical or doesn’t know what they’re doing, they’d have even more incentive to not sign a tax return and kind of just operate in the shadows.

I think that’s the correct prediction. Create licensure, and poor people will be less protected. Frankly, I doubt that even certification will make a difference; I think Joe Blow’s decision of who to get to prepare his return won’t be likely to change. What I think would help is a simplified tax code, and especially as it treats poor people.

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