Republican Rep. Sam Graves sees tax-policy opportunity and a fast-reversing pendulum in the recent dealings of Congress.
Of public opinion regarding federal fiscal policy, particularly in the aftermath of Friday's cap-and-trade energy bill passage, the lawmaker told a St. Joseph crowd Monday night, "This thing is going to swing hard."
Mr. Graves, a fifth-term representative from Northwest Missouri, foretold a tax rebellion coming from congressional actions such as the business bailouts, the energy package and the coming health care reform.
He called for opponents of the current U.S. Tax Code to continue pushing for alternatives such as the consumption-based Fair Tax, of which he has signed as a co-sponsor.
"Groundswells make things happen," he insisted. "I think people are getting it. This is an opportunity."
Billed as a town-hall meeting on tax reform, the gathering seemed more akin to a red-meat political rally or a policy-based tent revival, complete with "amen" addressed to certain points.
About 160 people attended the meeting in a theater at Missouri Western State University.
Mr. Graves, who lives in Tarkio, said citizen backlash would grow if Congress acts on proposals for value-added taxes and increased excise taxes on such products as alcohol and tobacco. While not denying the previous Bush administration built an imposing budget deficit, he said it pales next to the fiscal imbalance seen since President Obama took office.
With the deficit, he said, comes an acquisition of debt. "Somebody has got to pay for it, and it's going to be everybody," he said.
During the question-and-answer session, no audience members stood to challenge such viewpoints.
A group of other speakers joined the congressman on stage to talk about the impact of tax policies. Judy Hausman, a St. Joseph CPA, brought to the podium a collection of thick books that make up only a portion of tax law. Individual volumes dealt with depreciation, compensation and sales tax.
The problem, she said, is not just the size of the code, but the consistency of its application. Some provisions change with each passing year, the accountant said, and different federal court circuits issue different rulings on the tax laws.
"It's not etched in stone - it's a moving vehicle," she said. "You can't plan if you don't have a consistent tax code."
Sharon Cornelius of Easton, Mo., an accountant who helps run a family dairy operation, said fixed farm costs and a fluctuating tax situation make for a tough business climate. Floated before Congress, but left out of the House energy bill, was a methane tax that would be charged against cattle emissions.
"I guess it just seems like we have lost all reason in this nation," she said to broad applause.
Ken Newton can be reached at kenn@npgco.com.
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xanzzz says...
I am all for major tax reform and accept reality of most tax law and rate changes are for the wealthier simply because they pay the most taxes. It is just logic 101.
But I am tired of the constantly perpetuated myth people like Congressman Graves use to stoke every human beings dislike for taxes. People like Graves cry taxes and hope people do not look. Every situation to them is fixed by lower taxes and all people buy into that while only a very small amount that are wealthy ever notice a change. Since the major tax reform act in 1982 all changes to the tax codes have been a percent here or there or tax cuts resulting in really either no change or a small decrease after all is been done. This myth that are income taxes have been going up is completely fraudulent.
We have major debt and the last I checked the amount of taxes paid over the past quarter century did not seem to repressed business and the economy. But out of control spending has by both government and irresponsible big businesses paying out obscene salaries and bonuses to top management and seeking more and more risky ways to make the money to pay out the money.
People need to ignore the shiny lure of someone like Congressman Graves uses when they speak about taxes because no matter what new system we are going to be paying them and will be paying a lot of them just by the debt we have and what all of us that crosses all parties actually expect our government to do. Nothing major in taxes can be done until we take care of and control the expenditures. Which by the way is the same thing with health care so please stop looking into the shiny lure of code words that are meant to push people buttons and misdirect them.
June 30, 2009 at 8:38 a.m. ( permalink | suggest removal )
sunny13 says...
Fair tax sounds great to me - keep up the great work Mr. Graves!
June 30, 2009 at 9:05 a.m. ( permalink | suggest removal )
Calissourian says...
That picture looks like an editorial picture by the photographer--"Exit-Graves" Subliminal messages that you want him out. Most reporters are all liberals-Doesn't surpise me.
June 30, 2009 at 9:37 a.m. ( permalink | suggest removal )
Timothy_Dike says...
Dislike for taxes is not a myth, all one has to do is look at their income tax statement, their property and personal property tax statements. Gas receipts, sales receipts, utility bills, and in some cases just the price that you pay for everything. I can assure you that Americans are getting tired of getting taxed for everything. We understand that some taxation is necessary, but Government should instead cleanup it's act and account for what they take from us now before demanding more. They are spending more than they are taking in and someone will have to pay for it? The way things are going now, just defies logic. When the average person loses part of their income, they cut back, not spend more. You can not spend yourself out of debt, but you can spend yourself into bankruptcy and if you think GM and Chrysler are bad, wait until the government ends up there.
June 30, 2009 at 10:36 a.m. ( permalink | suggest removal )
lbc says...
All we hear is about taxes.....we need to have a great deal more emphsis on spending or lack thereof.
I just watched a video of a congressional hearing...the "witness" was the Inspector General of the Federal Reserve ( 5-8-09 )
When asked about the spending of ONE TRILLION DOLLARS, she was unable to respond as to where that money went.
When asked about the spending of ONE TRILLION DOLLARS of "off balance sheet spending"....she was unable to respond as to where that money went.
Since I was not there, I could not ask..."what in the world is off balance sheet spending....?" That is insanity.
We could cite dozens of examples of crazy spending....Hillary Clinton seems to haul a billion dollars to some remote spot in the world, everytime she takes a trip. I would guess she is indeed welcome.
Obama's reckless personal budget....$300,000 photos of the Statute of liberty.....a $60,000 night on the town sets a bad example.
And, "ear marks"....every (almost) Congressperson quietly without record, spends and spends and spends, all for their supporters. And, we don't even get to know the particulars.
Campaign promises are just that and Obama's team is working hard to increae taxes in every possible way.
It's time to get spending under control
June 30, 2009 at 10:39 a.m. ( permalink | suggest removal )
lbc says...
By the way..........you will not find "off balance sheet spending" in any Accounting text book. You will not learn anything about that, in the school of Accountancy.
That is strictly a political term. Only a politician could think of something so insane.
June 30, 2009 at 10:41 a.m. ( permalink | suggest removal )
apmastrangelo says...
xan - You hit the majority points on taxes right on the head.
The problem with all the cries for reform have a few major problems; they always end up costing the people "more". Mr. Graves is correct on one point, he did little to fend off much of what took place in starting this snowball rolling over the previous 8 years but now wants constituents to put trust and energy in support of his ideas.
Consumption based "fair" taxation always sounds good on the surface until you look hard into various details of what entities can benefit the most from the exclusions. Unfortunately it is generally not the middle wage earners gaining ground on plans such as these with those in the highest of income brackets gaining the advantage.
Want to control taxes, then control government spending at every level. The sad reality is, city, county, state, and federal agencies (all of them) have one inherent problem, they grow, and grow, and grow, with no restraint. That is until the well begins to run dry and even then look at the major solution of most when the shortfalls begin - Raise taxes.
June 30, 2009 at 10:42 a.m. ( permalink | suggest removal )
tallest says...
It is bad enough to have a government that thinks everything I have belongs to them. Worse yet is a tax code that demands time and resources that should go to productivity in my area of expertise.
The intrusive, abusive IRS needs to go. Ditto a tax code so inscrutable, the IRS can decide on a whim what it means to suit its purposes (and act on that whim) in any given instance. Ditto the millions of man hours and billions of dollars spent annually on accountants, tax preparers and tax attorneys.
No matter what your opinion is on taxes, most taxpayers should agree there is a better, simpler way to collect them. Here's your cut off the top, Uncle Sam, Uncle Jay...now get lost and quit bothering me.
June 30, 2009 at 11:46 a.m. ( permalink | suggest removal )
runningman says...
Who benefits from our present tax code? The rich and politicians benefit. How is the rich person going to benefit from a consumption tax? There are no loop holes in it like the current tax code. If they spend their money then they pay the tax. Who will pay more in taxes with a fair tax? The people who spend the most money will pay the most taxes. Everybody will pay taxes this way and contribute to the operation of our government. You will not get your paycheck on Friday and see that 30 - 40% was held back by your employer, off the top to hand to the IRS. You will get your whole paycheck to do with as you please. If you want to save most of it you can and you won't pay taxes on the savings or investment. If you want to go out and buy that new car or IPhone or outfit you can and you will pay taxes accordingly. If you only want to buy what you need to live you will pay taxes accordingly. If you want to give to a charity or your church you can do that for the sake of giving not grudgingly to get the tax deduction on April 15.
June 30, 2009 at 11:24 p.m. ( permalink | suggest removal )
runningman says...
With our current system we pay income taxes and consumption taxes. Rich people can take advantage of loopholes to reduce or eliminate their income tax and to avoid the consumption taxes. I used to work for a couple who did exactly that. They paid less taxes than I did and they only paid me minimum wage at the time. Everything they bought was bought tax free through their corporation and they officially paid themselves so low a wage on paper that they always got 100% of the income tax back. In actuality they pulled in millions every year. What they were doing was immoral but it was perfectly legal by our current and then tax code.
June 30, 2009 at 11:38 p.m. ( permalink | suggest removal )
lbc says...
runningman....actually you missed the real point. It's not necessarily "the rich" that benefit. It's the self employed. I know "rich folks" whose income comes on a W-2...they pay through the nose.
I know lesser "earners"....lets say, farmers. Not huge income but they have the "opportunity" to write off some things that on a good day are "marginal"....on a bad day....well, not so marginal.
My point is that the level of income is not the determining factor.
Lets take someone who inherited 100 million dollars and invests it all in municipal bonds....they will pay no income tax.
loopholes is an interesting term. It means different things to different people. I could point out a lot of "loopholes" that many ordinary citizens take advantage of every year and they think nothing of it, because they are "ordinary". When your "ordinary" it's "ok" to take advantage of "loopholes".
The system is truly broke. broke...broke...broke. And, we're waiting for politicians to fix it. Lots of luck.
July 1, 2009 at 9:30 p.m. ( permalink | suggest removal )