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Show 4 The Garn Opinion Taxes eat us alive As April 15 draws near, millions of Americans are laboring over their federal and state income tax forms. And I am sure most taxpayers tax-payers will agree that we are being eaten alive by taxes and relief is needed. For example, one of the hundreds of letters I receive from constituents complaining com-plaining about the burgeoning tax , rate was from a man who included a chart showing exactly how his tax bite was pinching him. And the figures were incredible. Since 1970, his personal income taxes have almost tripled. Of course, if he is now making more money, his taxes might well increase, but the fact is there is no real indication that he is making more money. Because of the inflation in-flation that has raged through our economy since the early 1970's, it is quite conceivable that his buying power is even less than it was seven years ago. This man's situation is all too common in America today. There can be no denying the impact of such tax rates on the willingness of our citizens to increase their productivity or even their willingness to pay their taxes. Why should we work harder to produce more when the government will simply take from us any gains we might make in monetary income? The trend now is to resort to tactics, legal or illegal, that will decrease the amount people must pay. Many cheat on their income taxes, and many more are dealing strictly in cash payments that cannot be audited by the IRS. Indeed, there is ample evidence that many Americans are not resisting temptation, and an underground un-derground economy is springing up in this country today. Simply put, our people are resorting to an exchange of services in order to keep their transactions tran-sactions off the books, and most importantly, out of the hands of the tax collectors These "off-the-books" earnings result from an attempt to reduce taxable earnings. The barter, or exchange-of -goods, economy is inherently inefficient which is why it is normally replaced by a money system. However, when the money economy involves rates of taxation which are nearly confiscatory, barter regains its attractiveness. Business Week magazine estimates that the underground un-derground economy might total as much as $195 billion per year. Had that amount been subject to today's taxes, last year's deficit, which totaled $48 billion, would not exist. Of course, government can tighten the reins. It can hire more tax collectors, increase enforcement, and write more restrictive tax rulings. Congress can close up more tax shelter options. I am opposed to all these tactics. We are penalizing the most ingenious, most productive members of our society because they make more -. Taxpayers demand relief - not tinkering, or redistribution of income. And only a major and sweeping tax cut can accomplish ac-complish this. |