78-12-A1
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Income Tax[edit]
Transcript[edit]With the fever for tax reduction running high throughout the land, Congress is debating changes in the income tax law. Much of that debate is over how much to reduce the tax - which in itself is something of a monumental breakthrough. Very few voices are raised in opposition to a cut and none suggest an increase. Of course I'm talking about elected representative s who will submit themselves to the voters in November. Over in the offices and corridors of the Internal Revenue Service no such foolishness as reducing the citizens' tax burden is tolerated. Jerome Kurtz, Internal Revenue Commissioner has suggested that if a taxpayer wants to pay less income tax he should -- QUOTE -- "take a lower paying job." If Congress won't give him new laws increasing the tax, Commissioner Kurtz just might use his authority to pass a few regulations on his own. U.S. News & World Report recently listed some 40 so-called fringe benefits the Internal Revenue Service is assessing as possible income, subject to tax. Time won't permit listing all 40 but let me read you some to show how phoney is the constant talk of loopholes with its inference that tax deductions benefit only the well-heeled. For example , "Free parking on employer's premises." "In-kind benefits, such as free or cut-rate telephone and power service for retired employees of phone companies and other utilities." That, of course, aims directly at senior citizens on fixed incomes as does the idea of taxing residents of, "Old age homes provided by companies for their retired employees." And listen to these "fringe benefits" the Internal Revenue Service would tax: "Christmas gifts worth more than $25 from employers; vacation facilities maintained by companies for free use by employees; employee cafeterias and executive dining rooms offering subsidized prives; lunch and dinner money provided for employees in all sorts of situations; company picnics; Christmas lunches; parties; taxi fares for employees coming or going after dark and free transportation to plants or offices in distant locations or unsafe neighborhoods." All of these are the things we've always thought of as the mark of a good, responsible employer. And speaking of employers, the Internal Revenue Service would like to tax "free receptions and entertainment for wives at trade conventions." That smacks a little of using taxation to separate husband and wife. Another so-called fringe benefit is the provision of bodyguards for corporate executives. With the number of businessmen who have been kidnap and murder victims or terrorists that hardly seems a luxury. On the Internal Revenue Service list there are, of course, all the perquisites of country club memberships, company jets, an so forth. All-in-all, the Internal Revenue Service is putting itself in the management role by using taxation as more than a means of raising revenue. This is Ronald Reagan. Thanks for listening. |
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