IRS Often Wrong

April 15, 1995, from the Cato Institute:

This year some 40 million Americans will clash with the Internal Revenue Service. In a new Cato Institute study, "Why You Can't Trust the IRS," author Daniel J. Pilla says in a rising number of these confrontations, the taxpayer is right, and the $7.6 billion IRS is wrong.

In the study (Policy Analysis no. 222) Pilla finds that despite a doubling of its budget over the past 10 years and a nearly 20 percent increase in enforcement personnel, the IRS is increasingly incapable of administering and enforcing the nation's tax law.

Pilla cites the following as among the reasons the IRS can no longer be trusted.

Pilla says the IRS fails to meet the standards of financial accountability and diligence that it imposes on the citizenry. Since the IRS can no longer adequately police itself, it can no longer be trusted with the authority to police individual American businesses and taxpayers.

Why It Matters

The time has come to abolish our complicated, intrusive and ineffective income tax system. Never before has the political will and popular mandate converged in support for structural overhaul of our tax system. Both politicians and the public are now calling for a simplified, fair and effective tax collection system. Pilla says policymakers should act now -- abolish the IRS and replace it with a national sales tax.

The study can be ordered for $4.00 from Cato Institute Books at 1-800-767-1241.

Source: Libernet Digest V103 #12.