Where is the Outrage?
According to a General Accounting Office report on Dec. 19, 2003, tax-dodging schemes, especially those involving illegal offshore credit card accounts, have been growing faster than the IRS' ability to crack down on them.
"Abusive tax-avoidance schemes could threaten our tax system's integrity and fairness if taxpayers believe that significant numbers of individuals are not paying their fair share of taxes," the report concludes.
IRS documents indicate that schemes are depriving the treasury of as much as $40 billion dollars each year. That estimate refers only to illegal accounts. Many billions more in tax revenues are lost through 'legal' outsourcing of jobs to other countries.
The number of companies leaving the United States each year is accelerating at an alarming rate. The huge loss in tax revenue is becoming almost incalculable.
According to the December 2003 report, the IRS had identified over 400,000 taxpayers who are involved in tax-evasion strategies that are likely illegal. Earlier that year, the IRS had estimated the number at 131,000. It's clear the IRS (and Congress) has no clue as to how much revenue is being lost.
Now, three years later, with the foxes still guarding the chicken coop, you can be sure the problem is only getting worse.
The IRS tax code has become so complicated and incomprehensible that virtually nobody can understand it, obviously leaving it subject to broad interpretation. The IRS Tax Code needs to be completely revamped. Tax loopholes for 'special interests' must be curtailed.
So, what has the Bush Administration done to solve the problem? They have declared that outsourcing of jobs is good for America, tax cuts will reduce the deficit, and have reduced IRS auditors by several thousands.
Paul G. Jaehnert
Vadnais Heights, Minn.
More like this story