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U.S. taxpayers spend more than $2 billion annually in tax preparation fees. Nora Carol Photography/Getty ImagesThe Internal Revenue Service has postponed the April 15 tax filing deadline to May 17. If taxpayers need even more time to file federal returns, the agency added, they can request an extension until Oct. 15. This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities, said IRS Commissioner Chuck Rettig. The announcement may come as welcome news for many Americans, but it also raises an important question: Why should taxpayers have to navigate the tedious, costly tax filing system at all? The case for a simple return In 1985, President Ronald Reagan promised a return-free tax system in which half of all Americans would never fill out a tax return again. Under the framework, taxpayers with simple returns would automatically receive a refund or a letter detailing any tax owed. Taxpayers with more complicated returns would use the system in place today. In 2006, President Barack Obamas chief economist, Austan Goolsbee, premiered the simple return, where taxpayers would receive already completed tax forms for their review or correction. Goolsbee estimated his system would save taxpayers more than US$2 billion a year in tax preparation fees. Though never implemented, the two proposals illustrate what we all know: No one enjoys filling out tax forms. So why do we have to? A costly and time-consuming system Return-free filing is not difficult. At least 30 countries permit return-free filing, including Denmark, Sweden, Spain and the United Kingdom. Furthermore, 95% of American taxpayers receive more than 30 types of information returns that let the government know their exact income. These information returns give the government everything it needs in order to fill out most taxpayers returns. The U.S. system is 10 times more expensive than tax systems in 36 other countries with robust economies. But those costs vanish in a return-free system, as would the 2.6 billion hours Americans spend on tax preparation each year. Maybe youre wondering whether Congress is just behind the times, unaware that it can release us from tax preparation? Not true. As an expert on the U.S. tax system, I see Americas costly and time-consuming tax reporting system as a consequence of its relationship with the commercial tax preparation industry, which lobbies Congress to maintain the status quo. The United Kingdom is among dozens of countries that permit return-free filing for some taxpayers. Loop Images/Universal Images Group via Getty Images Commercial tax preparation Almost 20 years ago, Congress directed the IRS to provide low-income taxpayers with free tax preparation. The agency responded in 2002 with Free File, a public-private partnership between the government and the tax preparation industry. As part of the deal, the IRS agreed to not compete with the private sector in the free tax preparation market. In 2007, the House of Representatives rejected legislation to provide free, government tax preparation. And in 2019, Congress tried to legally bar the IRS from ever providing free online tax preparation services. Only a public outcry turned the tide. The public part of Free File consists of the IRS herding taxpayers to commercial tax preparation websites. The private part consists of those commercial entities diverting taxpayers toward costly alternatives. According to the Treasury Inspector General for Tax Administration, which oversees IRS activities, private partners use computer code to hide the free websites and take unsuspecting taxpayers to paid sites. Should a taxpayer discover a free preparation alternative, the private preparers impose various restrictions such as income or the use of various forms as an excuse to kick taxpayers back to paid preparation. Consequently, of the more than 100 million taxpayers eligible for free help, 35% end up paying for tax preparation and 60% never even visit the free websites. Instead of 70% of Americans receiving free tax preparation, commercial companies whittle that percentage down to 3%. Tax savings and evasion Perhaps you are guessing that there are valid policy justifications for avoiding government and empowering the private sector. Judge those arguments yourself. One argument from commercial tax preparers is that taxpayers will miss out on valuable tax savings if they rely on free government preparation. In fact, the government software would reflect the same laws used by the paid preparers with the same access to tax saving deductions or credits. Further, tax preparers like H & R Block promise to pay all taxes and interest resulting from a failed audit. As a result, these services have every incentive to take conservative, pro-government tax positions. A second argument is that government-prepared tax returns encourage tax evasion. In a no-return system, the government reveals its knowledge of the taxpayers income before the taxpayer files. Thus, the argument goes, the taxpayer knows if the government has missed something and has reason to let the mistake stand. But taxpayers already know what information forms the government has because they receive duplicates of those forms. The incentive to lie does not increase because the taxpayer avoids weeks of tax preparation. [Youre smart and curious about the world. So are The Conversations authors and editors. You can get our highlights each weekend.] Bolstering the anti-taxers Finally, there is the anti-tax argument for onerous tax preparation: Keep tax preparation unpleasant to fuel anti-tax sentiment. In the past, Republicans argued against high taxes. But after decades of tax cuts, Americans are no longer swayed by that argument. Exasperating tax preparation, according to this argument, helps keep the anti-tax fever high. And that fuels public hate for government and the tax system. Unfortunately, the anti-tax contingents desire to force Americans to spend time and money on tax preparation dovetails with the tax preparation industrys desire to collect billions of dollars in fees. Tax preparation companies lobby Congress to keep tax preparation costly and complicated. Indeed, Intuit, maker of TurboTax, the tax preparation software, lists government tax preparation as a threat to its business model. One example is the earned income tax credit, a government program for low-income people. The credit is so complicated that 20% of the people who are eligible never file. If the government prepared peoples tax returns, that 20% would receive government support. Nonetheless, Intuit has lobbied lawmakers to make the credit more complicated, thereby driving more taxpayers to paid preparation services. To date, the tax preparation industry has kept the system complicated because the potential cost to it in terms of lost revenue is vast. Only public outcry can change the system.This article is republished from The Conversation, a nonprofit news site dedicated to sharing ideas from academic experts. It was written by: Beverly Moran, Vanderbilt University. Read more:As Australias COVID vaccine rollout splutters, we need transparency about when international borders might reopenHow American tax laws encourage inequality Beverly Moran does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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Vote on immigration reform - Yahoo News

The budget is not normally somewhere that Global Mobility professionals look to for policy reform, however the Chancellor of the Exchequer, Rishi Sunak, announced a number of changes to the UK immigration system in Wednesdays budget.

The key tag line that the government wants to reform the immigration system [to] help ambitious UK businesses attract the brightest and best international talent is hardly revolutionary, in fact it could be argued that any government that didnt buy into this principle would be acting irresponsibly. However, the budget publication does provide some good detail to support this ambition:

How will this help companies attract global talent?

The recent overhaul of the immigration system as a result of leaving the EU already means that UK businesses can hire in a significantly wider range of skilled roles from around the world, however when it comes to attracting the very brightest there has been little reform. The Global Talent visa (previously known as Tier 1 Global Talent) already allows recognised leaders and potential leaders in academia or research, arts & culture and digital technology to move to the UK, and the reforms announced to this category are unlikely to drastically change who will be eligible. Rather the reforms will simply make the application process easier, which may result in more recognised leaders choosing to move to the UK.

The Global Talent scheme only benefits a small area of the economy, however the announcement to provide practical support to small firms using the immigration system has the potential to really help British businesses attract talent from around the world. Something that puts a lot of small businesses off using t the immigration system is the upfront cost, however with the correct support and guidance these businesses can start to see the cost as a strategic investment rather than an administrative expense.

Where are the shortages in global talent and will the new fast-track immigration proposals help this?

The government maintains a Shortage Occupation List which is published in the Immigration Rules, and this list is dominated by STEM, creative, health and education roles. The announcements in the budget appear to show that the government is concentrating on only a small number of these roles and is paying particular attention to the fintech industry. Special treatment for scale-up companies the evolved form of a start-up, appears to be specifically focused at the fintech industry as this was one of the recommendations made in the Kalifa review, published less than a week before the budget.

The government appears to be doubling down on its support of the fintech industry, and is possibly an indicator that they are prepared to take a more sector based approach in helping develop high potential industries or supporting those that need a helping hand to remain competitive. The fintech industry is a good place to start as it is showing significant potential and also scalability, however if this government wants to make serious inroads into addressing the UKs shortage occupations it needs to continue expanding this approach into other sectors such as life sciences and manufacturing.

How will the new rules work and who will benefit?

The majority of the changes announced in the budget will not go live until Spring 2022, therefore the government will be publishing the detail on these changes over the course of the year.

The Home Office has historically been very slow and at times reluctant to adopt new ways of working, especially when it comes to digitising the immigration system, however the announcements in the budget appear to show that there is a renewed focus on modernising the infrastructure of the immigration system and making it easier to use.

Modernising the Sponsor Management System has been long overdue the system has not had any major upgrades since it went live in 2008. If this is done correctly it will make it significantly easier for Sponsor Licence holders to ensure they are compliant, and will also reduce the requirement for specialist intervention for administrative tasks such as reporting a change in a workers job title.

The announcements in the budget will primarily benefit 4 types of business;

There is certainly a great deal more work required to make the UK the leading destination for global talent, however the announcements in the budget are certainly a step in the right direction and should be welcomed by all areas of the economy.

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Budget 2021: Chancellor announces further immigration reform - Lexology

CBS4's Ted Scouten has more from Gimenez's press conference. Read more: https://cbsloc.al/3eIm8wV

CARLOS GIMENEZ: We need to come up with a comprehensive policy of what to do with-- with the children.

LAUREN PASTRANA: Now, at 5:30, Congressman Carlos Gimenez calling for change amid the crisis at the US Southern border. Gimenez urged lawmakers to overhaul immigration policies, as the surge in migrant crossings in recent weeks has opened up a political debate.

ELIOTT RODRIGUEZ: The White House says it's looking for shelters to house those children. But Republicans are blaming the White House for the increasing numbers. CBS 4's Ted Scouten has more on the congressman's visit.

CARLOS GIMENEZ: What's happening at the border is really a humanitarian crisis.

TED SCOUTEN: Congressman Carlos Gimenez, just back from a trip to the Texas-Mexico border, with fellow Republican lawmakers-- an estimated 4,200 unaccompanied children are being held after crossing the border alone.

CARLOS GIMENEZ: It really broke my heart to see those hundreds of kids ranging, I would think, from like four until about 17. And there are literally hundreds of them there.

TED SCOUTEN: Congresswoman Gimenez has said the president is to blame for the influx of migrants making their way to the US.

CARLOS GIMENEZ: So this is just the beginning of what we consider to be an onslaught due to the change in policies that we see from the Biden administration.

TED SCOUTEN: He said we need more border agents and to finish construction of key parts of Trump's border wall.

CARLOS GIMENEZ: We need to restore order to our border. We need hundreds of more judges to be able to expedite the asylum hearings of these migrants that are coming over.

TED SCOUTEN: Democratic Congresswoman Frederica Wilson said the Biden administration needs time to fix the problem.

FREDERICA WILSON: You have to remember that Mr Biden has only been in office for, like, 60 days. So all of this happened under Mr. Trump. You have to remember he has inherited a crisis. So we have to give him the opportunity to solve that crisis.

Story continues

TED SCOUTEN: 3,000 teenage boys may be headed to the Dallas Convention Center for temporary shelter. Congressman Gimenez said we could end up seeing kids once again at the holding facility in Homestead.

CARLOS GIMENEZ: We haven't heard officially that's going to be open. But I would expect with opening up a convention center in Dallas that eventually, you know, this may be open.

MARIA RODRIGUEZ: A expedited program to get those kids in the homes reunited with their family members or their sponsors is key.

TED SCOUTEN: Advocates from the Florida Immigrant Coalition say kids should not be held in detention centers.

MELISSA TAVERAS: Put them in facilities that feel like homes. Put them with foster parents or churches, like they did with the Peter Pan kids when they came from Cuba.

TED SCOUTEN: The Biden administration is now calling on FEMA to help with logistics in trying to process and shelter these children. Ted Scouten, CBS 4 News.

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Rep. Carlos Gimenez Calls For Immigration Reform After Visit To Texas Border - Yahoo News

We were both headed to Bogot from JFK in a massive, empty airplane. No older than 10 years old, the boy sitting across the aisle from me was flying alone, proudly clutching his American passport in one hand while he gripped an iPhone in the other. Together, we flew over oceans, seas, and borders. I didnt know if he was coming home or leaving; all I knew was that he was able to look forward and backward. Its a subtle point that often gets lost in the tumultuous political debate these days: Undocumented immigrants dont get to look back. The American dream is a one-way ticket that offers captivity in the land that always promised mobility.

This little boy reminded me of myself. As the daughter of separated parents who lived lives separated by the Atlantic Ocean, I spent my entire childhood ping-ponging between Miami and Madrid. Even though I wouldnt see my dad for months, I always knew I could eventually come back to the United States for Christmas or spring break. Likewise, I knew my mom would be waiting for me at Madrids Barajas Airport upon my return. I remember there being nothing more soothing than hearing the flight attendant announcing our descent; the ability to returnto a loved one or a meaningful placeis one of the most comforting feelings we experience. On that international flight towards Bogot, it dawned on me: When was the last time an undocumented immigrant felt that?

I know. It seems like such an ordinary, superfluous questionespecially during such trying timesbut thats exactly the point: Weve deprived immigrants of the gift of being ordinary, the most human trait.

I actually recently asked Javier, an old family friend, that question while we were in the car in California. At this point, hes been in the United States for so long that he goes by Jimmy. Jimmy fled the poverty and violence of Guatemalas western highlands more than 30 years ago, at the age of 16. Hes almost 50 now, has two U.S.-born children, and is a proud Uber driver in Los Angeles. With his eyes set on the highway ahead of us, Jimmy unexpectedly cracked when his mind traveled back to Guatemala, where he left his mother, Dominga, behind. As he talked, his voice suddenly felt younger. The idea was always to come back and see her, to hug her, he tells me, but unfortunately, it didnt happen. After all these years, Jimmy is still undocumentedgoing back means possibly never being able to reenter the United States. My children are here. I dont want to abandon them the same way I abandoned my parents.

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What We Shouldnt Forget About Immigration Reform - Vogue

WASHINGTON (AP) President Joe Biden and congressional Democrats proposed a major immigration overhaul Thursday that would offer an eight-year pathway to citizenship to the estimated 11 million people living in the U.S. illegally.

The legislation reflects the broad priorities for immigration changes that Biden laid out on his first day in office, including an increase in visas, more money to process asylum applications and new technology at the southern border.

It would be a sharp reversal of Trump administration policies, and parts are likely to face opposition from a number of Republicans. Biden has acknowledged he might accept a more-piecemeal approach if separate major elements could be approved.

We have an economic and moral imperative to pass big, bold and inclusive immigration reform, said New Jersey Democratic Sen. Bob Menendez, one of the lead sponsors of the bill, in unveiling it Thursday.

Menendez said Democrats have failed in the past because they have too quickly given in to fringe voices who have refused to accept the humanity and contributions of immigrants to our country and dismiss everything, no matter how significant it is in terms of the national security, as amnesty.

Separately, enforcement guidelines released Thursday by the new administration would target immigration enforcement more directly at people in the country illegally who pose a threat. That, too, would be a reversal from the broader targeting policy of Immigration and Customs Enforcement under Trump.

The major immigration overhaul legislation would offer one of the fastest pathways to citizenship of any proposed measure in recent years, but it would do so without offering any enhanced border security, which past immigration negotiations have used as a way to win Republican votes. Without enhanced security, it faces tough odds in a closely divided Congress.

Menendez said he had been speaking to Republican colleagues in an effort toward putting the pieces of a puzzle together on a bill that would receive enough votes to pass. He acknowledged the final product is likely to change significantly. But he also suggested that elements of the proposal could be included through a parliamentary maneuver in a budget bill that would only require 51 votes.

The bill Democrats introduced Thursday would immediately provide green cards to farm workers, immigrants with temporary protected status and young people who arrived in the U.S. illegally as children. For others living in the U.S. as of Jan. 1, 2021, the plan establishes a five-year path to temporary legal status. If they pass background checks, pay taxes and fulfill other basic requirements, then, after three years, they can pursue citizenship.

The plan also would raise the current per-country caps for family and employment-based immigrant visas. It would eliminate the penalty barring those immigrants who live in the U.S. without authorization and who then leave the country from returning for three to 10 years. It also would provide resources for more judges, support staff and technology to address the backlog in processing asylum seekers.

The bill would expand transnational anti-drug task forces in Central America and enhance technology at the border. And it would set up refugee processing in Central America, to try to prevent some of the immigrant caravans that have overwhelmed border security in recent years.

The plan includes $4 billion spread over four years to try to boost economic development and tackle corruption in Latin American countries, to lessen pressure for migration to the U.S.

Democratic lawmakers, including lead sponsors California Rep. Linda Sanchez and Menendez, held a virtual press conference Thursday to unveil the bill.

Our border policy is broken, period, Sanchez said. But this bill employs a multipronged approach that will manage the border, address the root causes of migration crack down on bad actors and create safe and legal channels for those who are seeking protection.

Comprehensive immigration legislation has struggled to gain traction in Congress for decades.

Menendez was part of the bipartisan Gang of Eight senators who negotiated a 2013 bill that ultimately collapsed. Prior to that, a bill backed by President George W. Bush failed in Congress as well, after multiple attempts at compromise.

Republican immigration hardliners were already panning the bill Thursday. Rep. Jim Jordan of Ohio, the ranking member of the House Judiciary Committee, charged in a statement that the bill rewards those who broke the law and floods the labor market at a time when millions of Americans are out of work.

President Bidens radical proposal is a nonstarter and should be rejected by Congress, he said.

Sanchez noted that Congress has tried and failed in the past, and we arent naive about the challenges that we face. But she contended that there is a broad coalition that wants to deliver on real reform.

While Biden is pushing a comprehensive bill, he suggested earlier this week he may be open to a more piecemeal approach. During a CNN town hall Tuesday night, he said that while a pathway to citizenship would be essential in any immigration bill, theres things I would deal by itself. That could leave the door open to standalone bills focused on providing a pathway to citizenship for various populations.

Menendez, too, seemed to suggest he was open to a piece-by-piece approach.

If we can get certain elements of this standing up and passed individually both in the House and the Senate, thats great, he said.

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Democrats consider piecemeal approach to immigration reform - The Associated Press