ReadyReturn is a tax return program that simplifies the filing of tax returns.  Kid Oakland wrote about this a while ago. 

Legislation to permanently authorize ReadyReturn, a state program that prepares simple income tax returns, died without a vote in the Assembly.

Assembly Bill 2905 was proposed by Assemblyman Dario Frommer, D-Los Angeles, and was sponsored by state Controller Steve Westly.

ReadyReturn, a pilot project, offered free income tax returns last year to 50,000 Californians with uncomplicated personal finances.

AB 2905, or similar legislation, is required for the pilot program to become permanent. … Unable to muster the 41 votes needed, Frommer let AB 2905 die Wednesday night.(SacBee 6/2/06)

It’s a good idea.  It especially helps low-income workers who often don’t understand their taxes and take them to paid preparation services.  So, why do you think it died?  Well, I’ll give you 3 guesses, and the first two don’t count:

Helping to lead the charge against AB 2905 was Intuit Inc., which sells Turbo Tax, a tax preparation software program.

We sure wouldn’t want Intuit to lose a few bucks.  While Intuit might have put a more pleasant face on the tax lobby, keep in mind who is really behind this: H&R Block.  ReadyReturn would put a crimp in their lucrative loan shark refund anticipation loan programs.  Bill Lockyer is already suing Block for these programs that charge interest rates that can be as high as 700%!  Similar providers such as Jackson Hewitt prey on the low-income market.  The loans carry almost no risk unless they botch up the tax returns, yet they still charge astronomical rates.

ReadyReturn saved money for the Californians who most need the assistance, but the legislature chose to side with the large corporations who give their campaigns more cash.  These companies can’t stand in the way of progress for ever.  The bill should be passed as soon as possible.