Asheville City Council will be asked to provide office space, volunteers, travel compensation, and supplies for VITA. I’m not sure what tipped me off. I think it was a mere reference to people with “low-to-moderate” incomes. Regardless, I was pretty sure VITA (Volunteer Income Tax Assistance) was going to be another vehicle for suggestively-selling government. Shortly thereafter, I read:

WHEREAS, the VITA Program will (1) create a venue for free income tax preparation and for the local community to become aware of other opportunities to improve the economic well-being of low-to-moderate income households; (2) create a venue to build movement toward an increase in access to tax credits and benefits as well as asset building opportunities for low-to moderate income taxpayers of Buncombe County, North Carolina; and (3) work to strengthen community support programs including housing and other social programs in support of building a strong and sustainable community infrastructure within Buncombe County, North Carolina;

Households earning less than $50,000 qualify for assistance. Granted, professional tax preparers are gouge jobs. What is absurd is the claim that households earning less than $50,000 are likely to spend money in the local economy and therefore every dollar not given to tax preparers (who obviously don’t spend the money they collect) “can produce $1.58 in local economic activity.” I’m guessing it works kind of like a printing press, or maybe poor people spend their tax refunds on local merchandise with ginormous markups.

In 2009, VITA volunteers completed tax returns with 78% accuracy, and the numbers have only improved. To help this amazing program, city council will be asked to support the VITA Act to:

  • Authorize the federal Community VITA Matching Grant program
  • Improve program flexibility, allowing the use of grant dollars for asset-building and financial education services (in addition to tax preparation)
  • Increase grant appropriations to $30 million annually for five years
  • Dedicate an additional $5 million annually, over that time, to the creation of a National Center to Promote Quality, Excellence and Evaluation in VITA.