[Congressional Record Volume 141, Number 173 (Friday, November 3, 1995)]
[Senate]
[Page S16673]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         ADDITIONAL STATEMENTS

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 DESPITE COMPLEX TAX CODE, IRS MUST TREAT TAXPAYERS WITH FAIRNESS AND 
                                RESPECT

 Mr. MACK. Mr. President, death and taxes may be the only two 
things in life that are unavoidable, and the Federal Government has 
even found a way to combine them. Federal estate--death--and gift 
taxation represents punitive double taxation and unfairly transfers 
income from families to the Government. They tax money that has already 
been taxed once, if not twice. The steep 55 percent top estate tax rate 
frequently forces many families to liquidate or sell their businesses 
or farms just to pay the tax collector rather than being able to pass 
those belongings onto their next generation--often wiping out a 
lifetime of hard work.
  Unfortunately, many taxpayers are punished even when they play by the 
rules. Because of the complexity of the Tax Code, many unsuspecting 
taxpayers get caught up in a situation in which they have to capitulate 
to the demands of the IRS or have to spend huge sums of money in the 
hopes of a fair tax court decision. Federal estate and gift taxation 
creates some of the most egregious cases. For example, hypertechnical 
IRS interpretation of the interplay between Code sections 2034 and 2038 
have transcended any intent of Congress. Unforeseen technical traps in 
the Tax Code were not meant to be revenue raisers for the Federal 
Government at the expense of unsuspecting taxpayers.
  Our complex and punitive Federal tax system is in need of a complete 
overhaul. Americans now waste some $190 billion and 6 billion man-hours 
just complying with our onerous Tax Code each year. That's the 
equivalent to the man-hours it takes to produce all the cars, trucks, 
and airplanes in this country each year. Tax reform is critical to 
simplifying the Tax Code and enhancing our Nation's long-term economic 
growth. And, as always, this will likely take several years to 
accomplish. In the meantime, taxpayers must always be treated with 
fairness and respect by the IRS as they comply with our current complex 
system.

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