The Internal Revenue Service is moving ahead with a plan to build its own free tax filing program, known as Direct File, announcing Tuesday that a pilot version will be available to some taxpayers in 13 states next year.
Armed with an influx of new money approved by Democrats last year, the IRS is conducting a major overhaul of its operations – despite continued threats from Republicans to cut future funding and even abolish the agency altogether.
Eventually, the IRS tax filing system could serve as an alternative to private tax preparation companies like H&R Block and Intuit’s TurboTax.
That's not it. Only reason is lobbying by tax software companies that somehow (read using lots of money) convinced politicians that a government provided solution is bad idea.
It's the same thing with your health-care and schools system.
That's definitely also true, but republicans genuinely want everyone to hate taxation as well, so their interests very much align with the companies that want to fleece you.
Lots of countries have pay as you earn schemes where your income tax is deducted but your employer and sent to the government and you don't have to even lift a finger, likewise the price on the item at the shop, by law, includes tax and it's completely seamless for you. Republicans will never like such schemes because they want taxation to be hated by all so that they'll go along with tax cuts that primarily benefit such folks.
Isn't the W-4 supposed to allow for a pay as you earn situation? It just never works out right and you either give the government an zero interest loan for the year or you get a surprise bill. Seems like they could be more on top of that.
IIRC that's what the income tax was supposed to be like … it wasn't even supposed to be an "income tax", it was supposed to be a tax on the employer side based on the amount of money they're paying their employees. Somehow it ended up being that employees individually have to deal with the headaches and your actual take home salary isn't obvious.