Makers of tax software faulted

Oakland Tribune, Oct 31, 2006 by Josh Richman

SAN FRANCISCO -- Consumer advocates blasted a Bay Area software company Monday for spending $1 million against the Democratic controller nominee, who supports a free tax-preparation program the company wants deep-sixed.

Board of Equalization chairman John Chiang supports the ReadyReturn program, a tax-filing system in which the state provides low-income Californians with its estimate of how much they owe so they can either simply pay it or do their own computation.

But Mountain View-based Intuit, maker of the well-known TurboTax software and other tax-related products, lobbied lawmakers successfully to prevent any money from being spent on ReadyReturn this year, and a week ago put $1 million into an independent expenditure committee called the Alliance for Californias Tomorrow. Thats more than the committee had raised in the years first three quarters.

The alliance spent $1 million on television ads last Tuesday and Thursday supporting Republican nominee Tony Strickland, a former assemblyman.

All of a sudden, they see a threat to their profits in the form of government trying to do the right thing, Consumer Federation of California executive director Richard Holober said Monday at Chiangs news conference outside the Franchise Tax Boards office in the Financial District.

Holober said his nonpartisan group doesnt make endorsements but does speak out when a company engages in outrageous behavior. Intuits spending, he said, is pay-to-play politics at its very worst.

Strickland campaign manager Paul Hegyi said Strickland appreciates support from anyone who shares his goal of cutting wasteful government spending and protecting taxpayers.

Now John Chiang is trying to change the subject... The contrast in this race is clear -- Chiang wants bigger government to advance his liberal agenda and Strickland will give independent leadership to cut waste and abuse from government.

Howard Jarvis Taxpayers Association President Jon Coupal issued a statement saying Chiangs support of ReadyReturn puts him on the side of an unpopular Big Brother government program that threatens the independence of taxpayers. Tax collectors shouldnt double as a tax preparers, he said.

Intuit issued a statement saying it consistently participates in public policy affecting taxpayers as well as its own interests, backing candidates of both parties who are champions of good public policy.

As for ReadyReturn, it said, theres a better no-cost alternative... At no cost to the state and no cost to the taxpayer, Intuit makes available free, accurate, easy-to-use software to 70 percent of the population of states that participate in the Free File Alliance, including California.

Chiang, 44, of Torrance, is the states highest-ranking Asian- American elected official; a former aide to Democrats such as Gray Davis and Barbara Boxer, he was a Board of Equalization members chief of staff and assumed that seat after the member was elected to Congress in 1997.

Strickland, 36, of Moorpark, served the 37th Assembly District from 1998 through 2004; his wife, Audra, now holds that seat. Now hes president of the California Club for Growth, the state branch of the national conservative PAC.

Contact Josh Richman at jrichman@angnewspapers.com.