SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
To donate by check, phone, or other method, see our More Ways to Give page.
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
House Ways and Means Committee Chairman Jason Smith (R-Mo.) and others are pictured during a hearing on April 9, 2025.
"Clearly corporate cronyism is more important to Republicans than lowering costs for ordinary Americans and increasing the efficiency of government services."
In addition to showering rich Americans and large corporations with more tax breaks, legislation that Republicans advanced out of committee on Wednesday would officially eliminate the Internal Revenue Service's popular and free Direct File program, which allowed eligible taxpayers to sidestep private prep companies that have lobbied relentlessly against government-offered alternatives for decades.
The tax legislation that the GOP-controlled House Ways and Means Committee approved in a party-line vote contains an underlooked provision that requires the U.S. Treasury Department to "ensure that the Internal Revenue Service Direct File program has been terminated."
The bill also opens the door to a "partnership between the IRS and private-sector tax preparation services to provide for free tax filing" to replace Direct File, which has been in the crosshairs of the Trump administration and the Elon Musk-led Department of Government Efficiency.
Watchdogs said the measure's language reeks of corporate influence.
"Corporate monopolist Intuit spent millions lobbying Republicans to insulate TurboTax from competition," said Hannah Garden Monheit, a senior fellow at the American Economic Liberties Project. "Now, House Republicans are doing Intuit's bidding by killing the Direct File program, which provided free, simplified public tax filing software beloved by its users."
"Direct File saves the average American $160 in filing fees and hours of time each year, and continuing it would save $11 billion annually," she added. "Expanding and improving Direct File should've been an easy win for DOGE, but clearly corporate cronyism is more important to Republicans than lowering costs for ordinary Americans and increasing the efficiency of government services."
"Trump will force you to fork out hundreds of dollars each year to TurboTax so he can give tax breaks to billionaires."
Direct File, which began as a pilot program during the 2024 tax filing season, threatened the dominance of Intuit and H&R Block, corporate giants that control the private tax preparation space and have been accused of engaging in deceptive marketing practices—particularly in their promotion of "free" services.
A report published earlier this year by the consumer advocacy group Public Citizen noted that both companies have donated heavily to Republican lawmakers, including members of the House Ways and Means Committee.
Late last year, dozens of House Republicans signed a letter urging the then-incoming Trump administration to eliminate the Direct File program. Letter signatories had received $1.8 million in campaign contributions from corporate interests opposing Direct File, including lobbyists for the private tax prep industry, according to Public Citizen.
"During the 2024 cycle, 19 of the Republican signers received a PAC contribution from either H&R Block or Intuit," Public Citizen found. "One of the letter's drafters, Rep. Adrian Smith (R-Neb.), received a PAC contribution from both companies."
The tax prep industry has also recently ramped up its lobbying efforts. NOTUS reported last month that "Intuit spent $3.7 million on federal lobbying in 2024, more money than it has ever spent on federal lobbying in a single year."
Sen. Ron Wyden (D-Ore.), the ranking member of the Senate Finance Committee, called Republicans' push to terminate Direct File "an under-the-radar" part of their tax plan.
"Trump will force you to fork out hundreds of dollars each year to TurboTax so he can give tax breaks to billionaires," Wyden wrote Wednesday.
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
In addition to showering rich Americans and large corporations with more tax breaks, legislation that Republicans advanced out of committee on Wednesday would officially eliminate the Internal Revenue Service's popular and free Direct File program, which allowed eligible taxpayers to sidestep private prep companies that have lobbied relentlessly against government-offered alternatives for decades.
The tax legislation that the GOP-controlled House Ways and Means Committee approved in a party-line vote contains an underlooked provision that requires the U.S. Treasury Department to "ensure that the Internal Revenue Service Direct File program has been terminated."
The bill also opens the door to a "partnership between the IRS and private-sector tax preparation services to provide for free tax filing" to replace Direct File, which has been in the crosshairs of the Trump administration and the Elon Musk-led Department of Government Efficiency.
Watchdogs said the measure's language reeks of corporate influence.
"Corporate monopolist Intuit spent millions lobbying Republicans to insulate TurboTax from competition," said Hannah Garden Monheit, a senior fellow at the American Economic Liberties Project. "Now, House Republicans are doing Intuit's bidding by killing the Direct File program, which provided free, simplified public tax filing software beloved by its users."
"Direct File saves the average American $160 in filing fees and hours of time each year, and continuing it would save $11 billion annually," she added. "Expanding and improving Direct File should've been an easy win for DOGE, but clearly corporate cronyism is more important to Republicans than lowering costs for ordinary Americans and increasing the efficiency of government services."
"Trump will force you to fork out hundreds of dollars each year to TurboTax so he can give tax breaks to billionaires."
Direct File, which began as a pilot program during the 2024 tax filing season, threatened the dominance of Intuit and H&R Block, corporate giants that control the private tax preparation space and have been accused of engaging in deceptive marketing practices—particularly in their promotion of "free" services.
A report published earlier this year by the consumer advocacy group Public Citizen noted that both companies have donated heavily to Republican lawmakers, including members of the House Ways and Means Committee.
Late last year, dozens of House Republicans signed a letter urging the then-incoming Trump administration to eliminate the Direct File program. Letter signatories had received $1.8 million in campaign contributions from corporate interests opposing Direct File, including lobbyists for the private tax prep industry, according to Public Citizen.
"During the 2024 cycle, 19 of the Republican signers received a PAC contribution from either H&R Block or Intuit," Public Citizen found. "One of the letter's drafters, Rep. Adrian Smith (R-Neb.), received a PAC contribution from both companies."
The tax prep industry has also recently ramped up its lobbying efforts. NOTUS reported last month that "Intuit spent $3.7 million on federal lobbying in 2024, more money than it has ever spent on federal lobbying in a single year."
Sen. Ron Wyden (D-Ore.), the ranking member of the Senate Finance Committee, called Republicans' push to terminate Direct File "an under-the-radar" part of their tax plan.
"Trump will force you to fork out hundreds of dollars each year to TurboTax so he can give tax breaks to billionaires," Wyden wrote Wednesday.
In addition to showering rich Americans and large corporations with more tax breaks, legislation that Republicans advanced out of committee on Wednesday would officially eliminate the Internal Revenue Service's popular and free Direct File program, which allowed eligible taxpayers to sidestep private prep companies that have lobbied relentlessly against government-offered alternatives for decades.
The tax legislation that the GOP-controlled House Ways and Means Committee approved in a party-line vote contains an underlooked provision that requires the U.S. Treasury Department to "ensure that the Internal Revenue Service Direct File program has been terminated."
The bill also opens the door to a "partnership between the IRS and private-sector tax preparation services to provide for free tax filing" to replace Direct File, which has been in the crosshairs of the Trump administration and the Elon Musk-led Department of Government Efficiency.
Watchdogs said the measure's language reeks of corporate influence.
"Corporate monopolist Intuit spent millions lobbying Republicans to insulate TurboTax from competition," said Hannah Garden Monheit, a senior fellow at the American Economic Liberties Project. "Now, House Republicans are doing Intuit's bidding by killing the Direct File program, which provided free, simplified public tax filing software beloved by its users."
"Direct File saves the average American $160 in filing fees and hours of time each year, and continuing it would save $11 billion annually," she added. "Expanding and improving Direct File should've been an easy win for DOGE, but clearly corporate cronyism is more important to Republicans than lowering costs for ordinary Americans and increasing the efficiency of government services."
"Trump will force you to fork out hundreds of dollars each year to TurboTax so he can give tax breaks to billionaires."
Direct File, which began as a pilot program during the 2024 tax filing season, threatened the dominance of Intuit and H&R Block, corporate giants that control the private tax preparation space and have been accused of engaging in deceptive marketing practices—particularly in their promotion of "free" services.
A report published earlier this year by the consumer advocacy group Public Citizen noted that both companies have donated heavily to Republican lawmakers, including members of the House Ways and Means Committee.
Late last year, dozens of House Republicans signed a letter urging the then-incoming Trump administration to eliminate the Direct File program. Letter signatories had received $1.8 million in campaign contributions from corporate interests opposing Direct File, including lobbyists for the private tax prep industry, according to Public Citizen.
"During the 2024 cycle, 19 of the Republican signers received a PAC contribution from either H&R Block or Intuit," Public Citizen found. "One of the letter's drafters, Rep. Adrian Smith (R-Neb.), received a PAC contribution from both companies."
The tax prep industry has also recently ramped up its lobbying efforts. NOTUS reported last month that "Intuit spent $3.7 million on federal lobbying in 2024, more money than it has ever spent on federal lobbying in a single year."
Sen. Ron Wyden (D-Ore.), the ranking member of the Senate Finance Committee, called Republicans' push to terminate Direct File "an under-the-radar" part of their tax plan.
"Trump will force you to fork out hundreds of dollars each year to TurboTax so he can give tax breaks to billionaires," Wyden wrote Wednesday.