Monday, April 20, 2015

The Truth About Taxes

Weekly Column By  Senator Deb Fischer

As Americans are painfully aware, April 15th was the due date for federal income taxes. This year, Nebraskans once again spent far too much time, energy, and money filling out complicated paperwork in order to get their taxes filed correctly and on time. This process not only causes frustration, it also creates financial hardships on families and businesses in Nebraska and across our nation.

According to the Bureau of Economic Analysis, America will spend more on taxes in 2015 than food, clothing, and housing – combined. Our nation’s total tax bill is $4.8 trillion. That is 31 percent of the national income. Furthermore, the U.S. tax code is so complicated that the IRS’s top official, former Commissioner Douglas Shulman, admitted he, himself, hired a tax preparer. All of these statistics underscore the fact that our current tax code just isn’t working.
Tax Day is an annual reminder that our complex tax laws are hurting Nebraska families and job creators. Small businesses are hit especially hard during tax season. Each year, small business owners spend nearly 2 billion hours and $18 to $19 billion complying with the tax code. That is time and money they could spend attracting new business, hiring new employees, or improving their business strategy.
This has to stop. I remain committed to promoting a simpler, fairer tax system that provides more certainty for families in Nebraska and encourages economic growth. The best way to achieve this is through comprehensive tax reform, which I fully support. The vast majority of economists agree that the single best way to create jobs and generate economic growth is by fixing our tax system. I am also working on a number of legislative proposals to decrease these burdens and at the same time, increase transparency at the IRS.
For example, this tax season was the first year Americans were required to answer ObamaCare-related questions on their tax forms. It’s no surprise that we are seeing this unworkable law turn taxes into an even bigger headache. As I continue to fight for ObamaCare’s repeal, I am working on measures to address specific, costly, and unfair tax burdens buried in the nearly 3,000-page law. For example, I am an original cosponsor of the Jobs and Premium Protection Act, which was introduced by Senator John Barrasso of Wyoming. The bill would repeal the annual tax on health insurance plans that was created by ObamaCare. This misguided tax is negatively impacting small businesses and self-employed citizens, and I am hopeful the Senate will act quickly to repeal it.
As the federal agency tasked with administering the U.S. tax code, the IRS has extraordinary influence over the lives of Americans from all walks of life and points of view. I believe it is the role of Congress to provide oversight and ensure they do not abuse this power.
In that spirit, I introduced a new bill, and reintroduced another, that will protect taxpayers from IRS overreach. The first, known as the Stop IRS Overreach Act  would prohibit the IRS from asking any taxpayer questions regarding their religious, political, or social beliefs. The second, named the Taxpayer Accountability Act would require the IRS to provide timely responses to taxpayer inquiries and complete audits more efficiently and effectively. I believe these two bills will serve as an effective safeguard for the constitutional rights of taxpayers, while also increasing transparency and promoting accountability at the IRS.
This agency has a long way to go to re-establish credibility and restore public trust. Nebraskans and all Americans have the absolute right to expect the IRS to be free from political influence, with taxpayers treated fairly and enforcement carried out in an unbiased manner.
I will continue to hold the IRS accountable to the American people and support legislation that will alleviate onerous, costly tax requirements. Doing so will provide certainty and strengthen our economy so that Nebraska families can enjoy a more prosperous future.   
Thank you for participating in the democratic process. I look forward to visiting with you again next week.

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