Sunday, July 23, 2006

Beautiful Tax Logic

If the government no longer wants the wealthy to pay much in taxes, why have tax auditors? Makes sense to me, and to our Dear Leader, too:

The federal government is moving to eliminate the jobs of nearly half of the lawyers at the Internal Revenue Service who audit tax returns of some of the wealthiest Americans, specifically those who are subject to gift and estate taxes when they transfer parts of their fortunes to their children and others.

The administration plans to cut the jobs of 157 of the agency's 345 estate tax lawyers, plus 17 support personnel, in less than 70 days. Kevin Brown, an I.R.S. deputy commissioner, confirmed the cuts after The New York Times was given internal documents by people inside the I.R.S. who oppose them.

The Bush administration has passed measures that reduce the number of Americans who are subject to the estate tax — which opponents refer to as the "death tax" — but has failed in its efforts to eliminate the tax entirely. Mr. Brown said in a telephone interview Friday that he had ordered the staff cuts because far fewer people were obliged to pay estate taxes under President Bush's legislation.

But six I.R.S. estate tax lawyers whose jobs are likely to be eliminated said in interviews that the cuts were just the latest moves behind the scenes at the I.R.S. to shield people with political connections and complex tax-avoidance devices from thorough audits.

Sharyn Phillips, a veteran I.R.S. estate tax lawyer in Manhattan, called the cuts a "back-door way for the Bush administration to achieve what it cannot get from Congress, which is repeal of the estate tax."

It's so simple, so circular, so beautiful. Now we are going to get the simple tax system so many clamor for, and the wealthy don't have to bother their beatiful minds with it.

But remember that if someone saves a million in taxes because of this "simplification", either someone else (or a whole lot of someone elses) must pay that million to the government or a lot of someone elses will not be given the services they received in the past: health care, roads, education. Ah, so complicated...