Direct File, Free File, And Tax Sentiment
Direct File’s fate will soon be known. Bridget Roberts, head of the IRS Direct File program, shared this week that a decision on the future of the service is due soon. The program allowed taxpayers in 12 states to file returns for free directly through an IRS web portal. Roberts told reporters the IRS is open to sharing with the private sector a Direct File feature automatically filling in taxpayers’ adjusted gross income from the prior tax year.
As for Free File… The IRS announced this week that it will extend the current Free File program through October 2029. The extension follows an agreement to make the free private-sector option available to taxpayers. Free File is a partnership between the IRS and several private tax preparation software companies that provide their online preparation and filing platform for free to eligible users.
Do President Biden’s tariffs align with his environmental goals? TPC’s Howard Gleckman examinesPresident Biden’s stated goals for American manufacturing—which he aims to boost with $18 billion in new tariffs on Chinese electric vehicles (EV) and solar panels—and curbing the effects of climate change. Given existing evidence, Howard concludes those tariffs “will raise prices on fossil fuel-saving goods and discourage buyers from making climate-friendly choices, with little benefit to US workers.”
Anti-tax measures appear popular in Washington state. A new Cascade PBS/Elway poll of voters in Washington seem popular. The measures would repeal the capital gains tax, end the cap-and-invest carbon pricing system, and make the long-term care insurance program (funded by a tax) optional. But it is unclear whether voters understand that a vote for the initiatives would be a vote against these taxes. For example, before learning about the pros and cons of the capital gains tax in the survey, 47 percent of those polled said they’d vote to repeal it. That share dropped to 40 percent after learning more about the initiative.
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