Mr. Speaker, I thank the gentleman. It is a pleasure joining the gentleman on such an important topic. It may be late at night, as someone observed, but I think most American families, they are used to staying up late right before April…
Mr. Speaker, I thank the gentleman. It is a pleasure joining the gentleman on such an important topic. It may be late at night, as someone observed, but I think most American families, they are used to staying up late right before April 15. And as a matter of fact, people get extensions, so I think there will be other late nights because no one is going to go through 10,000 pages looking for the answer unless they have a lawyer or an accountant.
The Democrats do not have a monopoly on this particular issue. What I do believe we have is a sincere interest in doing something about it. A very distinguished colleague of ours who happens to have a seat on the other side of the aisle recently stated, ``We have been here long enough. We had better deliver a simplified Tax Code. I think this should be a centerpiece of reform for congressional Republican candidates. Instead of tax cuts, we should be talking tax simplification.''
Now, those are words. They were in the majority. They could make it happen. But it is not happening. So wherein lies the problem? It is all talk.
Let me read something to you which I have always found interesting. I cut this article out 2 years ago because I thought it was so incredibly demonstrative of plain words lacking real intention and action. We were looking at that time, or the administration was looking for a commissioner to head the Internal Revenue Service. They hired a firm, a head-hunting firm to proceed with the search. This was the ad.
``Our firm has been awarded the assignment by the Department of Treasury through Secretary O'Neill and a Presidential oversight board to identify possible candidates to become the Commissioner of Internal Revenue Service. From this list the Secretary will recommend to the President individuals for his nomination to the United States Senate for confirmation.''
This is the part that I enjoy. ``The individual does not need to have any in-depth exposure to the tax system or code.'' They need not understand the problem. They need not understand the code. But what was the most important thing the administration was looking for? Here it is. ``As an appointee of the President, he or she is expected to fully support the President's position and his administration's position.''
You are going to get your marching orders from the administration, which means you are not going to simplify anything. I think someone said earlier tonight that the President may be viewing as his base those individuals that find aid and comfort in 10,000 pages of complex legislation, that does not inure to the benefit of the average American.
Speakers before me pointed out I think a real basic tenet in our democracy. Everybody will do their own fair share, including the payment of taxes.
According to the Treasury Department, actual corporate income tax revenues fell 36 percent from fiscal year 2000 to 2003, 3 years, 36 percent drop.
From 1996 to 2000, 95 percent of corporations paid than less 5 percent of their income in taxes. From 1996 to 2000, 60 percent of U.S.-based corporations paid no corporate tax at all. Among large corporations, those with sales of more than $50 million or assets of at least $250 million, 33 to 45 percent paid no taxes. Do you know why? Therein, somewhere in those 10,000 pages, we allowed this to exist today.
Warren Buffet declared, ``If class warfare is being waged in America, my class is clearly winning.''
This is not an anti-business message. The Democratic Party and the policies and agenda and philosophy is pro-business. All we can ask is that everyone carry an equal burden and make their equal contribution. That is not so unfair. That is as American as anything that exists in any political philosophy.
The leader touched on what is happening within the IRS and how his hands are tied because of obviously fiscal constraints and policy. The IRS says that its number of corporate audits has declined because of the explosive growth in tax shelters which allow
companies to take advantage of complex tax code provisions. In other words, the increasingly complex tax code has made it more difficult for the IRS to go after corporate tax evaders. In the meantime, middle class families remain open and increasing targets for the audits.
To quote David Keating, of the conservative National Taxpayers Union, ``If we had simpler tax laws, it would be simpler for taxpayers to follow and simpler for the IRS to enforce and administer.''
I recognize we are running out of time, but to give my colleague a clear example of what we have contained in those 10,000 pages, unknown to most of the average taxpayers is section 179. What is section 179? I am going to read you from an article that appeared in the Washington Post on September 26, 2003.
This is a sales representative for Hummer of Alaska. You know what Hummer is, the huge car. Allow me to introduce you to a fabulous opportunity, he writes in a prominent letter, a tax loophole so big you can drive a Hummer H2 through it. Imagine being able to purchase the number one large, luxury SUV in America today and receive a deduction for the entire purchase amount from your taxes this year. How is this possible, the salesman asks? Thanks to the Bush administration's recent economic stimulus package, small businesses and the self-employed are eligible to deduct the entire purchase cost of new equipment up to $100,000 the year of the purchase.
Now, we need to remind our colleagues, these provisions are supposed to help farmers and small business owners buy equipment to transport merchandise and haul equipment. No matter.
The letter continues: The Hummer H2 qualifies for this IRS section 179 deduction by its gross vehicle weight of over 6,000 pounds. Cars and medium-sized SUVs do not qualify for this deduction. If you are seriously considering acquisition of a new vehicle, step up to the vehicle that can take you where you want to be, financially and otherwise.
It does not stop there, because I will tell my colleague, you can go out and buy a Porsche SUV for about $90,000, and it will qualify for section 179 in those 10,000 pages that some taxpayer gets to write off in that 1 year to drive that luxury vehicle.
I do want to remind my colleagues that someone on the Democratic side has introduced legislation to correct that. It will never see the light of day because we are not in the majority. That is what we are talking about. We have already talked about the different tax breaks for families that they could figure out.
Taxpayers overpay their taxes by an estimated $1 billion a year because they fail to claim itemized deductions. How many taxpayers actually go through the trouble of figuring the code out so they can itemize? About one-third of taxpayers who are eligible for the earned income tax credit which is designed to help the working poor fail to claim it because it is too complicated. It is so complicated that tax preparers are responsible for nearly 70 percent of the errors and overclaims on returns. The people that are supposed to know the business cannot figure it out.
I will leave you with one thought. Time is money. Simplification does translate into savings and responsibility and sharing the tax burden equally. Time is money, and I say this to the American taxpayer. It is your time and it is your money, and you deserve a heck of a lot better treatment.