I think this is a great idea and hope it passes but I see a few problems. Not only will IRS employees be out of work but HR block will tank, franchise owners of tax services (Jackson Hewitt, etc) will be sol, and all those independant accountants wll be left with no customers. Some effort to reintegrate them into other careers should be made and stock holders of tax prep companies better sell now. I also think there should be some exceptions such as prescription drugs.
Once upon a time there were milkmaids. They milked cows. As times changed, milking cows was more automated. Milkmaids were out of work.
There's about 47,000 IRS employees. The only ones crying about them being out of work would be them and their families. As for the tax services of HR Block, etc, all of a sudden there will be a lot of Americans who are getting their full paychecks instead of "take home pay" and a sizeable percentage of them just might want to invest their money and need financial/investing advisors. HR Block could adapt to the changes or die as a company.