[Congressional Record Volume 140, Number 53 (Thursday, May 5, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 5, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                            TAX FREEDOM DAY

  Mr. GRASSLEY. Mr. President, today is Tax Freedom Day--the day when 
the average American can stop working for the Government and start 
working for themselves and their families. The taxpayer has to work 125 
days in 1994 to pay for all those taxes--two days more than last year. 
Sadly, this is the latest date for Tax Freedom Day since the Carter 
administration.
  Fortunately, yesterday the taxpayers finally had a victory. Senator 
Exon and I were successful in reducing the deficit by $13 billion over 
the next 5 years. We had to fight the White House, the big spenders, 
and the Chicken Littles to succeed, but with the support of many 
grassroots organizations, representing millions of taxpayers, we 
finally won.
  While the deficit must be cut more, this is a good victory that we 
can build on for next year.

  Unfortunately, there was some very bad news for the taxpayers in the 
budget bill. The administration has decided that it is not enough to 
raise our taxes by a record amount. They also want to unleash 5,000 
more IRS agents on the American people, without any more specific 
taxpayer protections.
  This is the same administration that, during the campaign, claimed 
they could find $45 billion from foreign companies. Well, now that they 
are in office they cannot seem to find even 10 percent of that $45 
billion.
  The administration does not even want to pay for these new agents on-
budget. Instead, they want to pay for them through smoke-and-mirrors, 
off-budget, under the claim that they will actually save money. I with 
I had a nickel for every time I have heard someone tell me in 
Washington that this program or that regulation was actually going to 
save money. There is no objective evidence that these agents will 
collect substantially more money.
  I decided not to oppose this proposal during Senate consideration 
only because the sponsors and the Department of the Treasury agreed 
that the new agents would not be brought on board unless the Taxpayers 
Bill of Rights II, sponsored by Senator Pryor and myself, was enacted.

  The Taxpayer Bill of Rights II, builds on the original Taxpayer Bill 
of Rights sponsored by Senator Pryor and myself passed in 1988. This 
new bill would establish a special Taxpayer Advocate office outside the 
control of the IRS. Right now, taxpayers under IRS attack have nowhere 
to turn but the IRS itself. The new setup would allow the Taxpayer 
Advocate to act independently on behalf of upstanding taxpayers.
  The bill would also remove limits on recovery of civil damages from 
the current cap of $100,000, and establish recovery for negligent 
action by the IRS. In the bill, taxpayers would be given a cause of 
action against the IRS for wrongful liens. It would also protect 
taxpayers who act in good faith on the guidance they get from IRS 
publications. These are just some of the many provisions that protect 
the taxpayer.
  Unfortunately, the Department of the Treasury and this administration 
decided not to honor its agreement with me and my colleagues. Treasury 
did all it could to undermine the requirement that the Taxpayer Bill of 
Rights II be law before we have more IRS agents--and they were 
successful. It is my understanding that while the Treasury was 
negotiating an agreement on the Senate side, they were conspiring on 
the House side to remove these key provisions.

  It appears that this administration wants the new IRS agents and no 
additional protections for the taxpayers.
  Mr. President, we in the Senate, and the American people, have been 
misled by the Treasury Department. How can trust among the American 
people be instilled, when Treasury and the IRS have misled elected 
representatives? It is disgraceful.
  I am committed to working with Senator Pryor and others to make this 
bill law. I am so much more determined to succeed now because of this 
blatant action by Treasury. My hope is that in the next few years 
Taxpayer Freedom Day will be earlier, and taxpayers will be much safer 
from the tender mercies of the IRS.
  I yield the floor, and I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. SIMPSON. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The Senator from Wyoming is recognized.

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