SamSaid!

AGENCIES

     Some of the worst abuses of citizens in different countries have come at the hands of “Agencies” of these Governments. With Hitler it was the Gestapo; with Stalin it was the NKVD; with the Cold War Communists it was the KGB. The list can go on and on with the Iranians (The Shah) , Libya (Khaddafi), Iraqis (Saddam), the Chinese, North Koreans, etc. etc. Critics of America like to throw in the FBI and CIA, but I prefer to think of them in other terms. As far as Americans are concerned, the Agency that strikes fear in the hearts of many is the IRS  — the Internal Revenue Service. A notice of an IRS “audit” can be very worrisome.

     The US Tax Code and IRS regulations are mess. They form a bewildering assortment of percentages, brackets, deductions, exemptions, credits, alternatives, etc.  —  thousands of pages long and measured in mega pounds and square yards. The cost of COMPLIANCE ALONE  is estimated at $225 Billion per year. We know that government takes money – lots of money. But think of $225,000,000,000 just for compliance with the tax laws and rules. If nothing else, the present system encourages cheating. Most people would conclude that something is wrong and  the present system and needs to be fixed  –  better yet, replaced. .

     George Bush has appointed two quality people to lead an effort to simplify and reform the tax structure. They are former Senators Connie Mack (R) and John Breaux(D). Prior efforts at meaningful tax reform have failed, but these two men have a good chance to recommend meaningful change instead of more bandaids. This time around, a “flat tax” has a fighting chance to be heard and considered seriously. Other countries have successfully used this approach, so it cannot be dismissed out of hand. A plan proposed by some tax experts would be an alternative flat tax that would greatly simplify the current “1040″ approach. That would mean that current taxpayers could choose between the present system and a flat tax at 15-20% (to be determined). The total change would be phased in over the next several years. Naturally, we all would be able to choose the system that would be best for us, but in the long run, both the taxpayers and the nation could benefit from the conversion to a flat tax which is supported by some very savvy financial experts. .

    Getting Congress to approve and implement such a major change would be about like a mouse booting an elephant 20 feet in the air. But give “Dubya” credit  — at least he has identified tax reform as a major objective in the coming year and is receptive to alternatives that make sense. If Connie Mack and John Breaux can engineer a change, I guess we would still have an IRS, but one has been de-fanged. I like the sound of that.

     I have no idea when a proposed change will be debated on the floor of the Senate, but whenever it occurs my guess is that the Noon Ballon (Teddy) and Senator Worthless (Boxer) will oppose it.