To: [names redacted]

From:    David Binder

Date:       April 13, 2006

Re:        CA Income Tax Summary Memo

In a recently completed survey by David Binder Research, voters show strong opposition toward the ReadyReturn system for filing California state income taxes. While initial opposition is strong, hearing statements, arguments, and cost information further erodes support until voters are seven times more likely to oppose the system, than support it.[1]

[Editor's note: This survey was commissioned by the Computer and Communications Industry Association.] 

Low Awareness, Low Support
Before being introduced to the ReadyReturn tax filing system, only three in ten (30%) California voters are aware of the system, and that awareness is similar across demographic groups, with no major demographic group having awareness of greater than 35%.

After hearing an initial description of the ReadyReturn program, only 36% of all California voters are supportive, while 49% are opposed, including 32% who are strongly opposed. The strongest support comes from voters under 30 (51% support), Latinos (50% support), and those who use storefront tax preparers like H&R Block (50% support).

The strongest opposition comes from Southern California voters (53% opposed), Republicans (52% opposed), and White voters (51% opposed). Republican men from Southern California are the strongest opposition major subgroup with 61% opposed to the idea; including 43% who say they are strongly opposed to the ReadyReturn program, after hearing just initial information.

Voters Trust Independent Tax Preparers More Than a State Agency
When asked whether the service is "good and useful" or "risky and a waste of taxpayer dollars", two-thirds (64%) of voters say risky, while only 23% say it is a useful service. Voter perception that ReadyReturn is risky comes from their underlying distrust of state agencies. Asked who they trust more - a state agency or an independent tax preparer - an overwhelming 81% say they trust an independent tax preparer more, while only 7% say they trust a state agency more.

Of those who say that they trust an independent tax preparer more (81% of all respondents), an even more lopsided 72% say the service is risky and wasteful, while only 16% say it is a good and useful service, demonstrating that those who do not trust a state agency (strong majority) drive belief that the program is risky.

Voters Would Rather Do Taxes Themselves than Trust a State Agency
Voters are distrustful of the Franchise Tax Board, with 60% saying they distrust the agency, and only 4% of all voters saying they "completely trust" the Board. This means that 96% of all voters have some reservations about completely trusting the California Franchise Tax Board.

As a result, voters overwhelmingly choose to prepare taxes themselves (86%) over having the Board prepare them for them (9%). Similarly, when asked about the Board computing their taxes and sending them to voters, 87% of voters say they would calculate their own taxes to check the Board's results.