What Obama’s and McCain’s Tax Stances Might Mean for the Future of Tax Preparation and Software
There has been a rising reliance on tax preparation software as of late which has helped engender resources like Tax-Compare.com, a comparison and review site for different tax software providers. How might the tax software industry be affected by the 2008 Presidential candidates?
Austin, TX (PRWEB) June 18, 2008 – Tax preparation software has become a multi-billion dollar industry. But can the government supplant the ever growing tax software industry? Co-founder of Tax-Compare.com, Leo Welder, doesn’t necessarily think so.
“In order for there to be a major impact on tax software, the IRS is going to have to become the sort of comprehensive resource that tax software market leaders like Tax Cut from H&R Block and Turbo Tax are for their customers,” says Welder, who wonders if the government would have the same motivation to help consumers maximize profits as the tax software industry has.
Many leading tax software programs provide a tax calculator and error check feature. Additionally, people who use tax preparation software receive help with everything from maximizing tax deductions to learning useful tax tips that can apply to those who own their own businesses, people who have lost their jobs, homeowners and many other categories.
But preparing taxes has been somewhat costly. BarackObama.com states, “Experts estimate that the Obama proposal will save Americans up to 200 million total hours of work and aggravation and up to $2 billion in tax preparer fees.”
Taxes have become major issues in the economic debate between the Presidential candidates, and the media has reported on the stark differences between each man’s tax platform.
A summary of the candidates’ proposals can be found on each candidate’s website. JohnMcCain.com declares “A Real Choice For Simpler Taxes,” which offers simplification in the form of a two-rate tax code with a “generous standard deduction.” But Obama’s proposal, listed on BarackObama.com, endeavors to diminish tax preparation time to “less than five minutes” by mandating pre-filled tax forms to be sent to taxpayers by the IRS.
While both candidates aim to eliminate the difficulties that make tax filing stressful for many Americans, only Obama calls attention to taxpayers’ reliance on third parties—tax preparers..
Tax preparation.
Perhaps tax software has become so popular because of the communal spaces tax software providers create, such as the “Live Community” on TurboTax.com, which Tax-Compare.com cites as a “Pro” in their review. These live communities help enable people to ask questions and give advice to other tax payers.
While some people doubt that the IRS replace tax software, others say that tax assistance is best provided by the business sector.
When asked for his response to the tax plans of the Presidential campaign frontrunners, Gaines Kilpatrick, co-founder of Tax-Compare.com, was unruffled.
“Everybody wishes they could do their taxes in five minutes, but when has the government ever been known to be speedy?” says Kilpatrick, “It wouldn’t be surprising if many people were still utilizing tax software in 2009.”
Americans have yet to see the results of either Obama’s or McCain’s tax plans. These plans are likely to influence the 2009 tax season.
For additional information regarding tax software, visit www.Tax-Compare.com.
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Zilker Ventures, LLC is a web publisher that consolidates information and reviews various business and financial products.
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