Here’s an odd rich-poor disconnect in certain legislators’ thinking. On Wednesday, the Senate Taxation Committee approved Senate Bill 53, a package of bank franchise tax reforms, but not before striking an electronic-filing requirement from the bill:
[Republican Senator Brock] Greenfield[‘s] next move offered an amendment to remove the electronic-filing requirement. “I like Sen. Greenfield’s amendment here. I’m an old paper guy,” [Democratic Senator Jim] Peterson said. He added that he doesn’t want to submit to “Big Brother.”
Sen. Scott Fiegen, R-Dell Rapids, said he favored electronic payments. Fiegen said the Federal Reserve requires electronic filings from banks.
Greenfield, in turn, described it as “an extra burden on business.”
The committee approved Greenfield’s second amendment 4-3, with Peterson voting for it and Monroe voting against it [Bob Mercer, “Bank-Tax Changes Go to State Senate,” Mitchell Daily Republic, 2016.01.21].
Every time I go into my bank, the teller processes my transaction with a networked computer. Yet asking my multi-million-dollar bank to use that networked computer constitutes “an extra burden on business” and some opening for “Big Brother.”
But if you’re broke and apply for Temporary Assistance for Needy Families, the state won’t hand you a paper check. You have to give the state access to your bank account for direct deposit, or you have to take an electronic debit card that can track your spending activity.
Rich folks running banks mustn’t be burdened with intrusive electronic filing requirements, but poor folks have go electronic. Sure.
Don’t buy the malarkey! Banks embraced technology long ago. They had no problem installing ATMs and they’ll have no problem with electronic filing.
CH,
While I need to know more on this issue, I don’t find your linking of the two appropriate.
Electronic becomes cost efficient as volume goes up. If this filing is annual, requiring e-filing may be a cost greater than benefit.
Similarly, if distributing benefits electronically increases the percentage of money getting to beneficiaries vs. going to administration, I am for that.
These two items deserve to be looked at on their own unique merits and not be looked at as either/or and applied universally.
Troy, even if it’s just once a year, are you telling me it’s more efficient for bank’s accountants to do all their figuring and then transfer that information to paper than it is to click-and-paste everything into an online form?
It is inherently less efficient to prepare the taxes and then carry out the additional step of putting everything in an envelope, licking a stamp, and carrying the envelope to the mailbox.