Tax reformists air their views

WASHINGTON, April 15 (UPI) -- Proponents of tax reform who met in Washington Thursday said many taxes are a drain on economic growth and an unnecessary financial strain on citizens.

Rising federal deficits and increased government spending since the Sept. 11 terror attacks have led some to question the Bush administration's recent tax cuts. But they suggested that the cuts may not go far enough in reducing the burden on American taxpayers.

"We should lament April 15 -- tax day -- as the day that too many of us all too willingly surrender our liberty and opportunities in life," said Edward Hudgins, the Washington Director of The Objectivist Center, a group in favor of decreasing taxes. Those in government who support the current tax system show that "politicians are pushers who want to addict us to government," he said.

The coalition of tax reform advocates has met every tax day for the last nine years to press for tax reform. The tradition began under the Clinton Administration, but continues even after gaining victories with the Bush Administration's tax cuts.

"To say President Bush's tax cut is working is a dramatic understatement," said Daniel Clifton, executive director of the American Shareholders Association. By cutting the capital gains tax and taxes on dividends, Clifton said the Bush Administration has "paved the way for strong economic growth."

The group called for a flat tax where all Americans would pay the same percentage of their income. But representatives also called for the elimination of several other taxes, including the capital gains tax on investment profits, the estate tax, and taxes on dividend income.

A flat tax would stimulate the economy by motivating high earners who could keep a greater percentage of their salary, according to Grover Norquist, who heads Americans for Tax Reform in Washington, an organization that advocates reforming the tax system. He added that tax reform is a matter of social, not just economic principles. "Everyone should be treated equally by law," he added.

Hudgins agreed, calling April 15 "a day of moral shame." The current system of taxation funds government entitlements beyond security of life and property, Hudgins said. The current system saps the sense of responsibility in citizens, Hudgins said.

Taxes are how government tells citizens, "don't worry, we'll take care of you," he added.

Many advocates at the news conference held in the National Press Club promoted a flat tax, but the elimination of the estate tax was also a top priority. James Martin, president of The 60 Plus Association, said, "Only in America do we get a certificate at birth, a license at marriage and a tax bill at death." The 60 Plus Association describes themselves as an anti-tax advocacy group.

If renewed, the Bush administration's tax cuts would phase out the estate tax in 10 years, Martin said. But, he added, Americans should not have to wait that long.

Small family businesses and farms bear the brunt of the estate tax, while the very wealthy can set up foundations to avoid paying the "death tax," Martin said.

Clinton and Kerry have committed a "con job," Martin said. He said the death tax is a burden on small business owners and farmers. The wealthy are able to set up trust foundations to shelter some of the burden of the tax, he said.

The taxpayer advocates also favored the extension of a 1999 ban on taxes on the Internet. "We are not willing to see the cost of [Internet] access driven beyond the reach of everyday families," the Consumer Internet Access Coalition said.

Pete Sepp, of the National Taxpayers Union, a group that advocates lower taxes, said the current tax system also robs American taxpayers of hours of valuable time. "If you started your taxes this morning, you may be out of luck," he said. It takes 11 hours and 32 minutes to complete even simplified tax forms, Sepp said.

Sepp also said decreased taxes would "empower both liberals and conservatives." He blamed the rise in federal deficits to an increase in government spending rather than the Bush Tax cuts.

Norquist agreed that wars in Iraq and Afghanistan are part of the reason for a sharp increase in spending over the last three years. But he also complained of increases in "domestic discretionary spending that there is no good excuse for."

All the advocates agreed the preservation of the Bush tax cut is only part of their goal of reforming the American tax system. But until then, Norquist said tax day would be the "bane of the American people who revolted against taxation to establish their country."