Comment Re:Of course (Score 4, Insightful) 72
The big tax preparation software companies lobbied strongly against the Direct File system, for obvious reasons.
They are just as obviously operating as a cartel, keeping their prices "in the same ballpark" without exactly matching. I remember a day when TaxAct was still a new entrant into the market, and it had excellent features and support at a price that significantly undercut TurboTax and H&R Block. Once it achieved popularity, its price suddenly jumped (a bit more than double) to match that of H&R block. Its features and support didn't improve at all; the price hiked and that was it.
TurboTax still charges more than the other two, creating an illusion of price competition. The truth is that TurboTax is significantly more popular, so it charges more, even though its features and service level are merely equivalent (at best).
So they all three ride on the same gravy train, and the last thing they want is a taxpayer-funded entity to provide a high quality option for free. They might have to actually EARN their income then! So they applied their considerable wealth to the political action of killing this offering, and succeeded.