Thursday, May 11, 2006

Anti Competitive Lobbying

Crushing Competition by Lawrence Lessig

Imagine if tire manufacturers lobbied against filling potholes so they could sell more tires. Or if private emergency services got local agencies to cut funding for fire departments so people would end up calling private services first. And what if private schools pushed to reduce public school money so more families would flee the public system? Or what if taxicab companies managed to get a rail line placed just far enough from an airport to make public transportation prohibitively inconvenient?
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Soon after ReadyReturn was launched, lobbyists from the tax-preparation industry began to pressure California lawmakers to abandon the innovation. Their opposition was not surprising: If figuring out your taxes were easy, why would anyone bother to hire H&R Block? If the government sends you a completed form, why buy TurboTax?

But what is surprising is that their "arguments" are having an effect. In February, the California Republican caucus released a report highlighting its "concerns" about the program - for example, that an effort to make taxes more efficient "violates the proper role of government." Soon thereafter, a Republican state senator introduced a bill to stop the ReadyReturn program.


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