The government against competition

This Wall Street Journal editorial comments on a plan by the US Internal Revenue Service to make anyone who takes money to help people with their taxes register with the IRS, and eventually pass competency tests and sign up for continuing education. The WSJ writes,

Under the plan, which would begin with the 2011 tax season, anyone who takes money to help people with their taxes will have to register with the IRS, and eventually pass competency tests and sign up for continuing education. So having made tax filing so complicated that most Americans need help with their forms, Washington now wants to raise the price of such counsel by regulating advisers in a way that may reduce their supply.

But it will help those already in the business of preparing tax returns by reducing entry into the industry and thus reducing competition. The editorial continues,

Cheering the new regulations are big tax preparers like H&R Block, who are only too happy to see the feds swoop in to put their mom-and-pop seasonal competitors out of business. Kathryn Fulton, senior vice president for government relations, told the Washington Post the company was glad to support rules that meant H&R Block "won't be competing against people who aren't regulated and don't have the same standards as we do." With fewer tax preparers in the market, H&R Block will find it easier to raise prices.

Here's an idea, why not simplify the tax code so that its easy for people to fill out their own tax returns, that way you wont have to worry about professional tax advisers who aren't regulated and have low standards.