The new tax reform train wreck

Your choice of affiliation model could soon be wirehouse, independent, bank or … the federal government. We've learned to take at least one White House player at his word. When Rahm Emanuel famously remarked that he never lets a good crisis go to waste, he meant it. They're in the car business, the investing business, the medicine business, the real estate business. And now that tax season is underway, soon the accounting business. The Wall Street Journal reports on efforts to register and oversee (through exam and continuing education requirements) the nation's tax preparers. Of course, the registration and CE will come at a cost, forcing out seasonal bean counters. This restriction of supply will then allow big tax preparation firms (think H&R Block) to charge more. As the paper reports, the big firms are, of course, all for the new legislation. The more disturbing part is the public money now being allocated to various e-filing projects so that the government can make it more convenient for you to file. They'll helpfully prepare your tax return for you (even populate your signature); all you have to do is approve it. If you don't like how it was prepared, not to worry, a schematic for a lengthy appeals process is currently being drawn.

So financial services reform and tax preparation reform are now in the works. Feeling the heat? How long before helpful government-employed financial advisors come a callin'? The only reprieve might come in the form of Chris Dodd's retirement, with friends and colleagues unwilling to be saddled with these train wrecks once he's gone. We won't hold our breath … .