10608 EXTENSIONS OF REMARKS May 8, 1996 EXTENSIONS OF REMARKS KEN BLACKWELL MAKES THE tax compliance is $192 billion-an amount we must be cognizant of the costs imposed CASE FOR A FAIRER, SIMPLER equivalent to General Motors' entire output on businesses by such mandates. TAX CODE for 1994 .. As we said in the tax commission's report, There are other costs that are not included filing tax returns will never be anyone's fa­ in the Tax Foundation's numbers. One of vorite pastime, but neither should it be what HON. STEVE CHABOT these is the cost of dealing with an audit or it has become: one of life's most nerve­ OF OHIO some other contact with the IRS. In 1990, the wracking, gut-wrenching and mind-numbing IN THE HOUSE OF REPRESENTATIVES IRS conducted 1.2 million audits, and sent 4.9 million computer-generated notices to tax­ chores. The current tax code is exceedingly Wednesday, May 8, 1996 payers regarding their returns or payments. expensive to comply with, increasingly dif­ The IRS filed 1.1 million liens and 2.6 million ficult to enforce and oftentimes impossible Mr. CHABOT. Mr. Speaker, one of the best to understand. and most persuasive advocates of a fairer, levies, and penalized a third of all employers simpler Tax Code is my good friend, former for payroll tax deposit errors. Needless to Long ago the authors of the Federalist Pa­ say, taxpayers spent a considerable number pers warned, "It will be of little avail to the colleague on the Cincinnati City Council, and of hours in these contacts with the IRS in people that the laws are made by men of present treasurer of the State of Ohio, Ken addition to the time they spent preparing their own choice if the laws be so volumi­ Blackwell. Today, I would like to include in the their tax returns. · nous that they cannot be read, or so incoher­ CONGRESSIONAL RECORD an op-ed article writ­ Why does it take so much time and energy ent that they cannot be understood.'-' A sim­ ten by Mr. Blackwell that appeared in the April to comply with the federal income-tax laws? pler tax system will let Americans get a han­ 16, edition of the Wall Street Journal. Consider the sheer size of the tax code and dle on their taxes, a grip on their govern­ Mr. Blackwell, who has served as a member regulations and the number of times changes ment and a hold of their future. of the National Commission on Economic that occur. From 1954 to 1994, the number of words in the sections of the Internal Reve­ Growth and Tax Reform, chaired by former nue Code relating just to income taxes in­ Congressman and HUD Secretary Jack Kemp, creased to more than 800,000 from less than makes a very strong case on behalf of a Tax 200,000. And there were constant amend­ HONORING THE MOSS VOLUNTEER Code that should be so simple that anyone ments to the tax code. Every amendment re­ FIRE DEPARTMENT can figure it out. He notes the exorbitant costs quires new forms, new instructions, new incurred by individuals and businesses in com­ record keeping and new calculations. plying with the maze of regulations in the Fed­ Who can understand all of this? Certainly HON. BART GORDON eral Tax Code. not the average family or small business. Not even professional tax preparers. Money OF TENNESSEE Ken Blackwell calls filing our tax returns magazine's annual survey of return preparers IN THE HOUSE OF REPRESENTATIVES "one of life's most nerve-wracking, gut­ suggests that as few as 10% of the profes­ wrenching and mind-numbing chores." Millions sional preparers can come within 10% of the Wednesday, May 8, 1996 of Americans agree. I commend the article to correct tax when asked to complete a return my colleagues, and I commend Ken Blackwell for an individual taxpayer with moderately Mr. GORDON. Mr. Speaker, I am taking this for his continuing service to our Nation. complicated facts. The tax code is so com­ opportunity to applaud the invaluable services [From the Wall Street Journal, Apr. 16, 1996] plicated that the IRS itself, according to a provided by the Moss Volunteer Fire Depart­ 1987 General Accounting Office survey, gives THERE'S NOTHING EZ ABOUT IRS FORMS taxpayers the wrong information 47% of the ment. These brave, civic-minded people give (By J. Kenneth Blackwell) time. freely of their time so we may all feel safer at The message in that letter should be a loud Critics of tax reform frequently suggest night. wake-up call for the government. The Amer­ that the tax law is not that complicated be­ Few realize the depth of training and hard ican people, who experienced the misery of cause most individual taxpayers file the sim­ Tax Day yesterday, think our current tax plest returns, a Form 1040EZ or a Form work that goes into being a volunteer fire­ system is far too complex and confusing. It 1040A. Unfortunately, even the simplest re­ fighter. To quote one of my local volunteers, is choking the ability of businesses and fami­ turns are not that simple. The IRS notes "These fireman must have an overwhelming lies to grow and prosper. It is time to uproot proudly that it should take taxpayers " only" desire to do for others while expecting nothing the current disgraceful system and replace it two hours and 42 minutes to complete the in return." with a clear, simple tax code. 1040EZ. Why does it take so long to fill out Mr. Sabus was one of thousands of people a form that is just a little bigger than a Preparation includes twice monthly training who sent letters to the National Commission postcard? The instructions for the 1040EZ are programs in which they have live drills, study on Economic Growth and Tax Reform, 36 pages long! And the instructions for the the latest videos featuring the latest in fire chaired by Jack Kemp. The commission, on Form 1040A are 79 pages. fighting tactics, as well as attend seminars which we both served, came up with six prin­ Furthermore, although taxpayers may end where they can obtain the knowledge they ciples that should guide the national debate up filing a Form 1040EZ, many are still like­ need to save lives. Within a year of becoming on tax reform. One of those principles is that ly to keep (or try to keep) the records that a volunteer firefighter, most attend the Ten­ the new tax code should be so simple that would be necessary were they to file a longer anyone can figure it out. Unfortunately, that form. For example, they may keep records of nessee Fire Training School in Murfreesboro guideline has been all but ignored by pundits charitable contributions, mortgage interest, where they undergo further, intensified train­ and reporters who've been debating the mer­ child care expenses, medical expenses, state ing. its of getting rid of the home-mortgage de­ and local taxes, tax return preparation fees, When the residents of my district go to bed duction and other aspects of the flat tax. and work-related expenses such as union at night, they know that should disaster strike The point that they are missing is that dues or professional association fees. much of the public's disgust with the current The problems with filling out tax returns and their home catch fire, well trained and income tax is caused by its complexity. The are far more serious for businesses than for qualified volunteer fire departments are ready cost of compliance is astronomical. The Tax individuals. Each business must deal not and willing to give so graciously and gener­ Foundation estimates that in 1994 businesses only with the burdens of determining its tax ously of themselves. This peace of mind spent more than 3.6 billion hours, and indi­ liability, but also function as a record keeper should not be taken for granted. viduals spent more than 1.8 billion hours, in and private tax collector for the IRS. Busi­ preparing tax returns. That equates to ap­ nesses must send the IRS (with copies to the By selflessly giving of themselves, they en­ proximately three million people working taxpayer by first class mail) more than a bil­ sure a safer future for us all. We owe these full time 12 months a year just to comply lion reports annually. While this information volunteer fire departments a debt of gratitude with the tax laws! The total annual cost of is essential for our tax system to function, for their service and sacrifice. e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. May 8, 1996 EXTENSIONS OF REMARKS 10609 CONGRESSMAN TOM CAMPBELL'S claim filed by a Federal employee be made provided by the Hilham Volunteer Fire Depart­ RELATIONSlllP WITH STANFORD within 90 days of the filing of said claim. If for ment. These brave, civic minded people give UNIVERSITY some reason, a decision regarding compensa­ freely of their_time so that we may all feel tion is not reached within 90 days, the claim­ safer at night. HON. TOM CAMPBEil ant would be given full and normal salary pay­ Few realize the depth of training and hard work that goes into being a volunteer fire­ OF CALIFORNIA ment until a decision is reached.