It’s time for a change in our tax system

Rob Zeis

The Internal Revenue Service didn’t have a very good week. The agency endured investigations by the Senate Finance Committee concerning abuses of their power over taxpayers.

Some examples of these abuses included audits of taxpayers for political purposes and false accusations (and prosecutions) of tax evasion based on computer errors.

It’s probably safe to say most taxpayers were happy to see IRS officials raked over the coals for a change. For years, the infamous bureaucracy pried into taxpayers’ lives with the detail of a rectal examination. It’s about time they got a taste of their own medicine (or hemorrhoids, in this case).

It is important to remember that we need a tax system making people accountable to pay their fair share. That system though must be applied fairly and even-handedly.

An obvious violation of the latter was reported two weeks ago. Representatives of Paula Jones said she was being audited by the IRS.

That’s an odd coincidence. Let’s see, she’s suing the president for sexual harassment and he supervises the Internal Revenue Service. Well, that must be just bad luck on her part, I guess.

The IRS has become a stick for politicians to use to get at opponents or a prize to reward friends. During testimony, several former IRS employees said senior supervisors often influenced who was or was not audited.

These supervisors prevented friends from being audited and started investigations on those people they had personal vendettas against.

Ideally, the IRS exists to administer the nation’s tax laws, assist with their collection and monitor compliance with those laws.

Unfortunately, the succulent morsel that is bureaucratic power has tainted the system. Power hungry supervisors and vindictive managers are threatening the future of the agency.

It may be time to abolish the IRS. As former presidential candidate Steve Forbes said, “Get rid of the IRS. Kill it, drive a stake through it, never let it live again.”

Forbes’ statements might be shocking to many, but they may indicate the best course of action to take.

The IRS is the epitome of the classic, bloated bureaucracy. While taking more and more of the taxpayers’ paychecks, the IRS wastes those collections with unwarranted investigations and inefficient procedures.

A simple flat tax would be a much easier burden for Americans to handle. This tax involves a simple percentage, applied to take-home wages and some investment and interest income.

There are many versions, ranging from a 15 percent tax for everyone to modified flat tax system where those below the poverty line pay no taxes and those in the top income bracket pay around 20 to 25 percent.

However, many say we would stand to lose millions. We already lose millions, if you measure what we are supposed to be taking in and what we actually are collecting.

Corporations and individuals with income over $200,000 pay 35 percent of their income in taxes.

That’s just at the federal level, since the states can take a another, albeit smaller, chunk.

These companies and people can afford to hire high-priced accountants and tax lawyers who know the voluminous, complex and intimidating tax legislation. They are able to find loopholes in the laws, pay less in taxes and, in effect, pay a lower rate.

Who can blame them? If you were forced to give $40 out of every $100 you make to Uncle Sam, you’d probably try to find a way out of paying too.

Most corporations and upper class people would gladly pay the 20 to 25 percent, not only saving them tax expenses but accountant’s fees as well.

A flat tax idea doesn’t fly too well, though, with some people. Think of all the people who have based their occupations on the enigmatic tax code.

Scores of attorneys, auditors and accountants would be thrown onto the street. They would be out of work, so of course they are against a flat tax.

Remember though, that the government not too long ago cut another “bloated bureaucracy” (the defense budget) significantly.

Tens of thousands of defense workers were laid off when contracts dried up.

Not too many in the government seemed concerned when thousands of hard working defense laborers were laid off.

Also, remember that many of them didn’t have college degrees like accountants and lawyers do.

The flat tax is an idea whose time may have come. It will not cost the taxpayers, but will save them and our country billions of dollars every year.

Those people who want to keep the IRS make too many excuses when they could be trying to solve the problem at hand.

The Internal Revenue Service is an antiquated, oppressive and ungainly agency that has reached the end of its life.


Rob Zeis is a senior in finance from Des Moines.