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04.10.06

Tim O'Reilly

Tim O'Reilly

Web 2.0: Not just for startups

While there's a lot of focus on the startup frenzy around Web 2.0 (and especially some of the feel good aspects like participation and rich user interfaces), it's important to remember that the deep trend of which Web 2.0 is a manifestation is the move to a more fully networked society. This trend is going to continue, and like all trends, it's going to show up in some unexpected places.

Connecting the dots (OK, clearing the tabs, in the radar tradition set by Nat!), here are three stories that caught my eye recently:

  • A fabulous op-ed by Austan Goolsbee in the NY Times recommends a technology update for the IRS. "The Internal Revenue Service filing deadline is almost upon us, forcing us once again to fill out exasperating tax forms. Spurred on by the grumbling, Congress will most likely make noises about introducing tax reforms that never come about.... Rather than rehash the same old debates, though, we would do better to aim at the middle and ask why most Americans have to do their taxes at all. You see, many people do not have a complex tax situation. They don't itemize. They get income only from simple places — like wages from their job and interest from their bank. And here's the kicker: this information is already sent directly to the Internal Revenue Service by taxpayers' employers and banks. Indeed, for many Americans, literally every line they fill out on their tax return is information the I.R.S. already has.... And yet these same people are forced to spend hundreds of millions of hours and several billion dollars each year preparing and filing their taxes. That expense in time and money is as much a part of the tax burden on Americans as the check that goes to the federal government.... With a small adjustment in processing procedures, the revenue service could send you a tax form already filled out with the information it has for you — a Simple Return — rather than a blank tax form. You would simply check the numbers against your W-2 and 1099 and then sign it." Web 2.0 you say? Well yes. If Google were running the IRS, it's what they'd do.

  • EWeek has a report on a new tool from Microsoft Research tool used "to help pinpoint large-scale typo-squatters that are known to be gaming pay-per-click domain parking services. The lightweight prototype, called Strider URL Tracer, builds on the work within Microsoft's Cybersecurity and Systems Management group to keep tabs on a sophisticated typos-quatting scheme that uses multilayer URL redirection to make money from Google's AdSense for domains program....The tool uses five programmatic typo-generation models—deliberate missing-dot typos, character omission typos, character permutation typos, character replacement typos and character insertion typos—to pinpoint potential domain-registration structures that are being used to steal traffic from large brands." Bit by bit we see the world of Neuromancer emerging, with cat and mouse games played out in an electronic in-between that didn't even exist a few decades ago.

  • The Wall Street Journal reports on a new startup called IMMI: "Integrated Media Measurement Inc. is using specially adapted cellphones to measure what consumers listen to and see. The company has developed software that helps the phones take samples of nearby sounds, which are identified by comparing them against a database. Besides television and radio, IMMI, as the San Mateo, Calif., company calls itself, says the technology can track exposure to CDs, DVDs, videogames, sporting events, audio and video on portable gadgets and movies in theaters." OK, this one is a startup, and it's verging on Web 3.0, the sensor-web, in which the architecture of participation will be an automatic byproduct of the devices we carry around with us.



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Comments: 7

Dawn Foster   [04.10.06 10:22 PM]

Tim's comment, "Web 2.0 you say? Well yes. If Google were running the IRS, it's what they'd do.", got me thinking.


What if the IRS was run by open source? Would we have collaborative tax returns? I could opt-in to the "open source taxes" program on the IRS site to start my return, which could be populated with the information that the IRS already has on file. Other organizations could collaboratively add information to my return (charitable deductions, etc.) I could collaborate with other tax preparers for free help and advice or pay someone like a traditional tax preparation company to provide this type of support and service (the Red Hat business model). Some savvy programmers would create nifty open source tools that allow me to simplify my tax return for certain obscure, long-tail scenarios that I share with only 25 other people in the world.


"If I ran the zoo, I'd make a few changes. That's just what I'd do." Dr. Seuss.

rupert   [04.10.06 11:22 PM]

I can only assume the previous comment was tongue-in-cheek(?)

rupert   [04.10.06 11:25 PM]

Anyway, I too was struck by how formulaic tax returns are and how easy it would be for the gov't (in my case, Canadian) to hire some PHP programmer for $500 to write online tax return software. Anything that is rife with patterns and math just screams to be programmed.

Instead, I wasted a day and a half struggling to understand the 3 intertwined tax forms and two sub forms, only to get a measly sum back. I'd like to charge the Federal gov't for wasting my time!

Pete Cowley   [04.11.06 04:14 AM]

Yep, The New Zealand equivalent of I.R.S., the I.R.D., introduced a system a few years ago now where if you don't have a complicated tax situation, you don't have to bother filing a tax return at all! They too get the information from the banks and your employer! Saves you and I.R.D. wasting each others time!!!!

But then, New Zealand is a pretty progressive place really...

Robin   [04.11.06 07:14 AM]

It's Austan Goolsbee, not Arnold.

[Thanks. I fixed it. -- Tim]

Jeffrey McManus   [04.11.06 08:46 AM]

I've often imagined what would happen if the tax code (every bit of it) were expressed in the form of web services. Give people free access to these and smart hackers (instead of corrupt financial advisors) would be able to find and expose the embarassing loopholes that enable millionaires to pay lower effective tax rates than middle-class taxpayers.

Jüri Kaljundi   [04.13.06 11:32 AM]

Well this is what we have here in Estonia for years already - Internet-based pre-filled tax forms, especially useful for people who have only a few income sources. You just login and accept everything in a few clicks, and that works for 90% if not more for the people. It is not just the salary pre-filled, but also mortgage interest that is partially tax deductible, training and education costs etc.

Out of 445 thousand income tax forms this year, 385 thousand were filed over the Internet. Over 90% of those who had paid more than needed during the last year got the tax returns back on their bank accounts during the normal 5 days. Because of that most people do their taxes on the Internet in the few first days when the system opens, to get their money back. Everybody just loves the system.

I cant imagine someone in the western world or US still uses pen and paper for anything IRS or tax related (or banking, for that matter). It is sometimes hard to believe that still happens, I understand Africa, but in US ...

No wonder Skype is produced in Estonia ;-)


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