Today, more than 80% of Americans think the US federal tax code should be easier to understand. A majority also struggle with basic tax concepts related to income tax filing. They have a point.
The US tax code is over 6,000 pages, and it has tripled in size over the past 40 years. Even the Taxpayer Advocate Service, an independent organization within the Internal Revenue Service (IRS), has said, “US tax laws are overly complex.”
This is something we understand and have been working to help address. For years, Intuit has publicly called for simplification of the US tax code so taxpayers can more easily understand their taxes. As Congress debates extending the Tax Cuts and Jobs Act (TCJA) this year, Intuit supports simple, workable, and effective fixes to simplify the tax code and make the tax filing process easier for American workers and families.
Rewrite the tax code in plain language.
Paying taxes is part of every American’s civic duty. But the tax code is full of complicated loopholes and deductions that require professional translation from more than 1.5 million accountants, auditors, and CPAs working in the US. In fact, there are an astounding 179 pages of instructions to file a simple 1040 income tax return. The Taxpayer Advocate Service even notes, “complex rules lead to confusion, errors, and distrust, which reduces self-assessment and voluntary compliance.”
Rewriting the tax code into plain, simple language will help millions of Americans understand the rules and pay their taxes on time and accurately.
Expand the standard deduction.
In 2017, Congress passed the Tax Cuts and Jobs Act and raised the standard deduction from $6,500 to $12,000 for individual filers and from $13,000 to $24,000 for joint returns. This reduced the number of taxpayers who needed to itemize, and, therefore, simplified the filing process. Congress should build on this progress and prioritize putting more money back in the hands of hardworking taxpayers by raising the standard deduction further simplifying taxes.
Make it easier for families to qualify for critical tax credits.
Every tax season, families look for ways to maximize their deductions and credits so they can save the most money. Two important credits are the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC). The EITC, for example, provides a family with three kids a refundable credit up to $7,430. But about five million potentially eligible taxpayers do not claim the EITC each year, resulting in about $7 billion in unclaimed benefits annually, according to the Treasury Inspector General for Tax Administration.
With the poverty rate for children under the age of 18 at 16.3%, Congress must make it easier for families to apply for critical tax credits like the CTC and EITC, while also spreading the word about these available benefits and the qualifications.
Streamline taxes for tens of millions of gig workers.
Tens of millions of Americans work in the gig economy driving for ridesharing apps, delivering food and groceries, or making some money on the side tutoring students. Yet we don’t have a streamlined and simple process for them to quickly and efficiently file their taxes. In 2025, it’s imperative that we ensure the US tax code reflects our modern world and how millions of Americans make a living.
Make it easier for small businesses and startups to claim tax credits.
Small businesses employ more than 61 million Americans, comprising nearly 50% of private sector employees. Running a small business is a massive challenge. About half of new small businesses fail before five years. What’s more, recent data from the Intuit QuickBooks Small Business Index found that small business employment growth has slowed and financial pressure has increased.
Many small businesses are not aware of tax credits and deductions that can help them grow and hire workers. For instance, fewer than three in 10 small businesses that qualify for the Research and Development (R&D) Tax Credit claim it. Congress can help small businesses prosper and access all the financial benefits at their disposal by simplifying eligibility requirements and reducing documentation burdens.
Intuit supports a simple tax code, and so should Congress
At Intuit, our goal is to build financial confidence among our customers, and power their prosperity. A simpler tax code means we can support our customers with filing their taxes and getting their refunds faster. We’re all about serving our customers, and tax simplification is at the heart of that—ensuring they’re able to live the lives they want to live.
These are common sense, bipartisan, and simple fixes that would make tax season easier for millions of Americans. It’s time Congress made them–and the millions of Americans who would benefit from them–a priority.