67% of Californians Oppose “ReadyReturn” Tax System, According to Statewide Pol

File Under: 2006, Government Competition

May 4, 2006

Computer & Communications Industry Association’s Poll Results Show Widespread Opposition to ReadyReturn; Bill to Expand Program Currently Under Consideration By California Legislature
 
Washington, D.C. – The Computer & Communications Industry Association (CCIA) today released results of a statewide poll showing widespread opposition to the “ReadyReturn” program offered by the Franchise Tax Board (FTB).  ReadyReturn is a pilot tax program in which the FTB calculates the tax burden and prepares the tax returns for certain California taxpayers, then mails them a completed tax return form telling them what the FTB thinks is owed.

The poll, conducted by California polling firm David Binder Research, found that 81% of California taxpayers would trust an independent tax preparer over the state agency and 86% of taxpayers would choose to do their taxes themselves instead of participating in ReadyReturn.

"California voters have high demands from their government,” noted David Binder. “They want clean air and water, safe and high quality schools, and safe roads and freeways. They do not want an unnecessary new government program to calculate the taxes they owe --- and, in fact, do not trust the government to do an honest or thorough job.”

A bill pending in the legislature, AB 2905, would authorize the FTB to expand the pilot program from 50,000 taxpayers to all eligible California taxpayers. The program would target those with the simplest tax returns – the large majority of which are lower-income.

“Taxpayers are not served by greater government involvement in their lives,” said Ed Black, President & CEO of CCIA. “ReadyReturn creates a huge conflict of interest for the taxpayer and erodes the tradition of Voluntary Compliance in our tax system.”

Legislators have also expressed serious concerns about the program’s impact o n lower-income taxpayers, the substantial cost of both building and maintaining the ReadyReturn program, the fundamental conflict of interest created when the state tax collector also serves as tax preparer and the security of personal privacy and data.

“I am concerned that my lower-income constituents will feel compelled to participate in the ReadyReturn program unknowingly and be disadvantaged in the end. Traditionally, government has not helped tax payers minimize their tax bill,” said Assemblyman Rudy Bermudez (D-Norwalk).

“It is a very rare occurrence when large, expansive government programs actually help everyday Californians. ReadyReturn is nothing more than a new state bureaucracy and will turn out to be a tax o n our lowest income earners in California,” noted Assemblyman Mike Villines (R-Clovis). The current program offers tax returns calculated and completed by the FTB to 50,000 taxpayers. According to an FTB June 17th press release, expansion of the pilot is predicted to reach 800,000 taxpayers with 30,000 taxpayers opting to use the ReadyReturn system --- a nearly 4% predicted rate of taxpayer participation.

Scott Frayer, President of the Los Angeles County Police Officers Association, also noted that his organization is opposing AB 2905 because of the “overwhelming security concerns” associated with taxpayers’ sensitive information being stored o n a government website.

A summary of the poll results is available at www.ccianet.org. A media teleconference will also be held at 2 p.m. PST today. CCIA’s Ed Black and David Binder of David Binder Research will be discussing the poll findings in detail and taking questions from the media. (877-357-0594, ID #8908407)

Contact: Will Rodger, 202-783-0070 ext. 105