Tax preparation software companies have a strong interest in the tax code continuing to be complicated. Because they’ve built a product that addresses that problem for people.
When someone comes along with a plan to make the tax code simpler, that’s a threat to their existence. You can be damn sure they’ll put up a fight.
“Institutions will try to preserve the problem to which they are the solution.” – Clay Shirky
We think about this more often within markets, across companies. Like when big behemoths buy up small, agile startups who start to eat their lunch. But it happens within the big behemoths, too.
A big company puts together a new team to develop a next-gen product. Something intended to be a newer, better version of the company’s flagship product.
How do you think the folks in charge of the old product will treat the folks in charge of the new one?
They’ll fight it.
They’re comfortable with the current system. Small change is what you can sell them. Large change will make them nervous. Wholesale change is an existential threat.
