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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. She is currently on leave.
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Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero � all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

TurboTax denies responsibility for Geithner's mistakes

By Megan McArdle
Jan 22 2009, 11:23 AM ET Comment

If you're an executive at Intuit, which makes a substantial chunk of change filing people's tax returns, you probably don't want to anger the future head of the Treasury--which, of course, contains the Internal Revenue Service, the ultimate consumer of your output.  On the other hand, you don't want to imply that your product is capable of screwing up peoples' tax returns.
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Witness the verbal gymnastics of Dan Maurer, Intuit SVP, as he tries to absolve both Tim Geithner and his firm from the mistakes on Geithner's return:

"Each year, millions of Americans use TurboTax to accurately prepare and file their federal and state tax returns," Dan Maurer, senior vice president and general manager of TurboTax, said in a statement late this afternoon. "The software helps taxpayers report their income and find the deductions and credits they're entitled to claim. TurboTax, and all software and in-person tax preparation services, base their calculations on the information users provide when completing their returns. TurboTax also has built-in error-checking tools that routinely catch common taxpayer mistakes. Federal law and our own privacy policy prohibit us from discussing specifics of any customer's return."

Perhaps Obama's first act as president should be to introduce the reflexive into English in order to help business handle the increasing number of such delicate situations.  One of the great charms of a language like Spanish is that no one ever screws anything up.  Problems can be dismissed with an airy "se rompió"--it broke itself.    The equivalent constructions in English, such as "mistakes were made", lack the elegant ubiquity.

That said, the fault can hardly lie with TuboTax, which cannot be expected to have a separate section to cover the special tax difficulties of a few thousand IMF employees out of the millions of returns it handles every year. 

The National Review is skeptical that this can have been an honest mistake.  On the one hand, whatever the difficulties of our tax system, I find it hard to imagine how anyone could confuse 1099 income with W-2 income.  On the other hand, I've never worked for the IMF, and I don't know what sort of forms they hand people.  And having spent sixteen hours doing my taxes last year--me, with no mortgage or depreciating assets, much less exotic tax-free financial instruments--I'm not willing to say that it couldn't have been simple human error. 

So who to blame, in the absence of a convenient reflexive?  My candidate is America's absurdly inefficient tax code.  Tax simplification is one of the most economically productive reforms we could make.  But there are just too many people getting tax credits who will fight fiercely to defend them.  And Obama seems to share the mania for "targeted tax credits" aka opaque and inefficient subsidies

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