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taxes
After Lobbying Blitz, Trump IRS Formally Kills Direct File Program That Would've Saved Americans Billions
"It was never about efficiency, it's about Trump and his billionaire allies taking money from our pockets to make the tax system worse and line the pockets of big business elites in this predatory industry," said a spokesperson at Americans for Tax Fairness.
Aug 01, 2025
In a move backed by private tax-filing corporations, the administration of U.S. President Donald Trump officially announced the shut down of the government's free Direct File service this week.
For two years under the administration of former President Joe Biden, the IRS allowed taxpayers in some states to file their taxes online using public software under a pilot program.
A report published in March by the Economic Security Project found that:
At maturity in five years, Direct File would save the average user $160 in filing fees and hours of their time each year, which saves Americans a total of $11 billion annually between filing fees and time costs. By breaking down barriers to filing, Direct File would also deliver up to $12 billion each year in additional tax credits to low-income families currently missing out.
In January, the direct file system was rolled out to 30 million Americans across 25 states, to rave reviews. According to a memo circulated within the Internal Revenue Service (IRS), the program was "beloved by its users," with a 94% satisfaction rate among those who used it.
But according to IRS Chairman Billy Long, who spoke at a tax summit Monday, it will not be made available again in 2026.
"You've heard of direct file, that's gone," Long gloated. "Big beautiful Billy wiped that out."
"I don't care about Direct File. I care about direct audit," he added, referring to his efforts to make it easier for businesses and individuals under tax audits to get updates on their status.
The budget legislation that Trump signed into law last month did not formally end Direct File, as Long suggested. However, it did allocate $15 million to the Treasury Department for a task force to study public-private partnership alternatives to replace Direct File. "Big beautiful Billy" likely referred to Long himself, whose IRS formally ended the program.
Long's announcement was the culmination of a months-long scheme by private tax-filing corporations like Intuit and H&R Block, and Republicans in government to kill Direct File.
As early as December, following Trump's reelection victory, GOP congresspeople began calling for the program's demise. Twenty-nine of them, who'd accepted a combined $1.8 million in campaign donations from the tax prep industry over their careers, signed onto a letter written by Reps. Adrian Smith (R-Neb.) and Chuck Edwards (R-N.C.) calling on Trump to issue a "day-one executive order" killing the program.
Long, himself a former congressman from Missouri, raised eyebrows in January 2025, shortly after he was named as Trump's nominee to lead the IRS. According to The Lever, he received a curious $137,000 worth of donations that he then used to pay himself back for a $130,000 loan he'd made to his failed 2022 campaign for the Senate. Around a third of the money came from tax consultancy firms.
In March, following mass layoffs at the IRS by Elon Musk's Department of Government Efficiency (DOGE), staff working on the Direct File system were told to halt their work. Prior to that, Musk wrote on his social media app X that he had "deleted" 18F, the government agency working on the project.
Right after tax day in April, The Associated Press first reported that the administration was planning to end the program.
While consumer advocacy groups called the change a "big loss" for the public, the American Coalition for Taxpayer Rights, an astroturf group backed by tax-filing companies, thanked Smith, Edwards, and other GOP congresspeople "for their leadership" calling for the termination of the program.
The program was effectively dead for months, but Long's gleeful coroner's report this week made it official.
"Last year, Direct File saved taxpayers $5.6 million in tax preparation costs by allowing people to file their taxes for FREE," wrote Rep. Alexandria Ocasio-Cortez (D-N.Y.) Friday on X. "That's why tax preparation companies like... Intuit lobbied to get rid of it. Trump just gave them their wish."
Despite claims by GOP congresspeople that the program was "wasteful," it actually saved taxpayers much more money than it cost. According to the Economic Security Project's study, "For every dollar invested in the program, Direct File delivers $106 in benefits to American taxpayers, between savings on tax preparation fees and access to untapped tax credits."
"This move exposes what's really happening in Trump's administration," said David Kass, the executive director of Americans for Tax Fairness. "It was never about efficiency, it's about Trump and his billionaire allies taking money from our pockets to make the tax system worse and line the pockets of big business elites in this predatory industry."
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Why Does Trump Really Hate Internationalism? It’s Bad for Billionaires
As he has thrown international rules to the side and tried to strong-arm other countries into concessions, his list of demands has resembled Wall Street’s much more than Wisconsin’s.
Jul 12, 2025
If you take U.S. President Donald Trump’s word, his foreign policy will finally make American workers great again. Where weak-willed attempts to work with other countries hollowed out the American economy, his belligerent nationalism will push the U.S. up and the rest of the world down. The globalists are for them; Donald Trump is for you!
But taking Donald Trump at his word is never a good idea. As he has thrown international rules to the side and tried to strong-arm other countries into concessions, his list of demands has resembled Wall Street’s much more than Wisconsin’s. He has fought Japan’s car safety standards and India’s price cap on coronary stents. He has gotten Canada and India to drop taxes on tech giants. And in perhaps his biggest victory, six major countries recently caved to his escalating threats and hollowed out a global plan to enforce a minimum tax on big corporations.
That Trump has fixed his ire on this international agreement reveals a broader truth: Internationalism is bad for billionaires. The misguided approach of neoliberal globalization opened up a lane for nationalists to claim that they defend the working class. But in reality, Donald Trump and his billionaire buddies would like nothing more than to play governments against each other. Billionaires can take fragmented countries to the bank—only international cooperation can build a united front strong enough to beat them.
Trump’s Revenge on the Global Corporate Minimum Tax
The global corporate minimum tax is a good example of this. (The details are a little complicated, but the super-rich would like to keep it that way, so bear with me as I explain.) In recent decades, major corporations have gotten spectacularly effective at avoiding taxes. Last year, Tesla made a profit of $2.3 billion in the U.S. but paid zero federal income tax. Neither did Merck, Pfizer, and Johnson and Johnson, despite making $45 billion around the world.
Two global dynamics help them achieve this. First, corporations use sophisticated accounting tricks to make their profits show up in countries where they do little actual business, like Ireland and the Cayman Islands—which just so happen to have very low taxes. Second, when countries attempt to raise taxes, corporations threaten to move elsewhere, creating fears of job losses and economic slowdowns that can convince governments to keep taxes low.
Trump’s global bullying successfully beat back two things he hates: international cooperation and taxing the rich.
In 2021, most of the world’s countries agreed to a tax deal that aimed to counter these dynamics. It was highly imperfect, with too many exceptions and rules skewed against developing countries, but it was still an important step forward. One of its key rules was a global minimum corporate tax of 15%. Suppose a Brazilian company paid just 10% in tax for income earned through its Swiss subsidiary. The deal would allow Brazil to apply a top-up tax and collect the remaining 5% itself. This 15% floor meant corporations could no longer drive a race to the bottom in tax rates, as any tax haven with a rate below 15% would just be leaving money on the table—someone else would tax it anyways.
And because congressional Republicans blocked the U.S. from implementing the deal—instead relying on a weaker U.S. version of the minimum tax—that’s what could have happened to American companies. This was how the agreement was supposed to work: If a country like the U.S. was too silly to make sure its companies paid at least 15% in tax, other countries would.
But Donald Trump hated the idea that countries could work together to make sure the likes of Apple, Facebook, and Eli Lilly would pay a fair share of taxes toward schools, hospitals, and roads. In an attempt to spook other countries out of making the corporate minimum tax work, Trump’s tax bill included a “revenge tax” provision that would have hiked taxes on companies from countries that applied it.
In a moment of deep cowardice, Canada, France, Germany, Italy, Japan, and the United Kingdom folded: they agreed to exempt American companies from the minimum tax in exchange for Congress removing the revenge tax provision. While the exact details are not yet clear, it is certain to give a leg up to American corporations avoiding taxes at home and abroad. It will also create a perverse incentive for foreign companies to relocate their headquarters to the U.S. in order to avoid taxes—or at least to hang that fear over countries that consider raising taxes on them. Trump’s global bullying successfully beat back two things he hates: international cooperation and taxing the rich.
Building the International “We” That Can Beat the Super-Rich
The way big corporations have played countries off each other to avoid taxes echoes a tried-and-tested strategy of advancing the interests of the rich. Corporations threaten to move investment out of countries that raise minimum wages or strengthen environmental standards. When countries reject austerity, financial markets often sell off their currency or demand higher interest rates on government bonds.
Rather than falling into this trap, some countries are demonstrating the unity needed to advance a more equitable economy. Last week, Spain, Brazil, and South Africa launched an alliance for wealth taxes on high-net-worth individuals, while eight countries took steps toward taxing first-class plane tickets and private jets. A major United Nations conference led to an initiative that could coordinate developing countries as they borrow funds, rather than leaving them isolated against their lenders.
These efforts model an internationalism different from the form of globalization that dominated the past few decades. Neoliberal globalization advanced a web of agreements that coordinated countries to place a ceiling on taxes and labor standards, not to raise the floor. Developing countries were markets to be opened, not publics to work alongside.
Corporate globalization needed to end—but the problem was that it was corporate, not that it was global. Nationalists promised to reverse this globalization and take back the spoils unjustly taken by others. But Trump has been far more successful int expanding American corporations’ ability to pillage than enabling everyday Americans to prosper. A balkanized world ensures no one is ever powerful or coordinated enough to subordinate the interest of the super-rich to the interests of the public. It doesn’t have to be that way. We can beat the super-rich, but only if that “we” is big enough to include those beyond our borders.
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Hope Is Not a Villain—But This Kind of Hope Is
We need a movement ready to restore America to the path of becoming the country we've dreamed of being for centuries. Not the fantasy of individual escape, but the reality of collective power.
Jul 04, 2025
I dropped out of high school. Got my GED. Worked as a general contractor in East Tennessee. Built things with my hands. Fixed busted systems. Lived paycheck to paycheck. That was my life, and for most of it, hope meant something real. Hope that a decent day's work would pay the bills. That a roof over your head and a future for your kids wasn't too much to ask.
But somewhere along the way, hope got hijacked.
Now hope looks like scratching off lottery tickets. Buying crypto hoping to get rich quick. Praying your side hustle turns into the next big thing. We don't hope to fix the system anymore.
We hope to escape it. And that kind of hope will kill us.
You see it everywhere. People identify with billionaires instead of their neighbors. They defend the rich because maybe someday they'll be rich too. They talk about taxes like they're one lucky break away from needing a tax shelter. The Hunger Games tried to warn us, and instead we started dressing like the Capitol.
I don't want to kill hope. I want to reclaim it.
Look at the numbers. The average person has a better chance of getting struck by lightning than becoming a billionaire. The odds of winning the lottery? About 1 in 292 million. Meanwhile, the odds of having medical debt? Nearly 1 in 3 Americans. The odds of being laid off or priced out or wiped out by rent? Closer to 1 in 2.
So why do we still believe? Because facing the truth is harder. The truth that the game is rigged. That the rungs of the ladder we were promised have been sawed off; the American Dream got replaced by American Denial.
Hope used to mean something different. It used to mean collective progress. Solidarity. We marched for better wages. We fought for civil rights. We built schools and unions and co-ops. We didn't dream of becoming the landlord. We fought to make rent fair for everyone. But now even our dreams are privatized. We traded shared ambition for selfish aspiration. And we're losing the plot.
I grew up hearing stories from my grandfather, who was one of 13 kids in a sharecropping family. One generation later, he owned 40 acres, grew tobacco, raised cattle, had houses to rent out to his kids. That wasn't just personal grit. That happened because America was actually building things back then. The TVA brought electricity to our region. The interstate highways connected us to the world. There were pathways to a better life that didn't require winning the lottery.
The pathways to prosperity were dismantled. I know because I watched it happen. My woodworking company made furniture components for Lazy Boy, Berkline, Universal, and Vaughn Furniture before NAFTA and CAFTA gutted us. It wasn't just my business. Our whole region got hollowed out while corporate America chased cheap labor overseas.
The pathways to prosperity were dismantled... Our whole region got hollowed out while corporate America chased cheap labor overseas.
The knowledge walked out the door with the last shift supervisor. Towns that had built middle-class prosperity around making things became ghost towns. Skills that took generations to develop got thrown away because some MBA in New York decided labor was cheaper in Mexico. We went from a country that made things to a country that made money off money. From building wealth to extracting it.
Now what do we have? The gig economy. Work three jobs and still can't afford rent. Get told to hustle harder while billionaires build rocket ships. We're supposed to be grateful for the privilege of driving for Uber while the guy who owns Uber buys his fourth mansion.
The whole system is designed to keep us hoping for individual escape instead of collective change. Keep buying those scratch-offs. Keep believing that if you just work hard enough, grind long enough, maybe you'll hit it big. Meanwhile, the people who rigged the game are laughing all the way to the bank.
They want us to think like temporary embarrassed millionaires instead of permanent working people. They want us to defend their tax cuts because someday we might need them too. They want us to vote against our own interests because we've been sold a dream that we're all just one good idea away from joining the club.
The whole system is designed to keep us hoping for individual escape instead of collective change.
But here's what they don't want us to figure out—we're stronger together than any of us could ever be alone. The TVA didn't happen because one guy got lucky. The interstate highways didn't get built because somebody won the lottery. Social Security didn't happen because workers hoped to get rich. These things happened because people organized, fought, and built something together.
I don't want to kill hope. I want to reclaim it. I want a hope that says we can fix this country, not just get rich enough to escape its problems. I want a hope that builds instead of bets. That organizes instead of idolizes. That sees neighbors instead of competitors.
These things happened because people organized, fought, and built something together.
I want hope that understands we don't need to wait for permission from billionaires to make things better. We don't need to hope they'll trickle some wealth down to us. We can build our own wealth by building things that matter. We can create our own prosperity by investing in each other.
What we need is a movement that's ready to do the big things, the hard things. A movement that understands you have to impeach Supreme Court justices who violate constitutional norms or are corrupt. That you have to take a DOGE-like approach to removing revolving door lobbyists from corrupted institutions like the FDA and the SEC. That you have to go hard against the very people who will stand in your way—the same people we're going to see standing in the way of Zohran Mamdani in New York if he's elected mayor. And too often those folks have a D by their name.
We need a movement ready to restore America to the path of becoming the country we've dreamed of being for centuries. Not the fantasy of individual escape, but the reality of collective power. Not lottery tickets and crypto dreams, but the hard work of building something that actually serves the people who live here.
That's the kind of hope worth having. That's the kind of hope that actually works. And that's the kind of hope that scares the hell out of the people running things now.
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