In the sixth installment of the text version of the Luntz Republican playbook, Frank explains that Republicans don't want tax 'reform', they want tax 'simplification'. Here's why it matters.

Fair Use Notice

This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: law.cornell.edu/uscode/17/107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

PAGE 65 ---

TAX RELIEF & SIMPLIFICATION

OVERVIEW

* You may be tempted to talk about tax policy in terms of reform. Don't. When Americans hear the word reform, they fear that they will end up paying more. Far better for you to talk about simplification - which everyone supports and sees a benefit.

* You may be tempted to talk about making the tax cuts from 2001 and 2003 "permanent. It. Don't. It is a far more effective to talk about "the largest tax increase in American history if these tax cuts are revoked." Remember, the American public dislikes a tax bike more than they like a tax cut.

* You may be tempted to talk about how Americans are overtaxed overall, Do, but also emphasize that Washington spends too much as well. The more you link high taxes to high spending, the greater the support for tax relief.

If there is one debate where framing the issue is as important as the policy itself, this is it. So here's what needs to be said to set the context and begin the tax relief and tax simplification effort:

1) Personalize tax relief. Don't talk in numbers. Talk in terms of day-to-day life, and explain how your tax relief plan will leave more money in the pockets of hardworking Americans at the end of every week. Don't talk about the overall size of the cut. Focus instead on the marriage penalty, death taxes, rate reductions, and so on.

2) “The only way to stop wasteful Washington spending now and forever is to keep the money with those who earned it” Americans are actually willing to pay their current tax bill, but what makes them angry is how Washington spends that money. So tell them: “If Washington doesn’t have your money, Washington can’t spend your money.”

3) “It’s the economy stupid." The second strongest argument for maintaining the tax relief is to provide “economic security." Every day, more Americans are concerned about their personal job security and their individual financial situation. The economic recovery is well under way and jobs are coming back in record numbers, but uncertainty is still with us, "A tax hike will only hike uncertainty and anxiety."

4) The IRS is still the most hated institution in government. You ca not overdo it when' comes to attacking the IRS. The single greatest public relations success of the Republican Congressional majority was the 1997 public hearings on the IRS. For about 11 days you were the talk of the country - true political heroes. History may not repeat itself, but why not try? The more you focus on continuing IRS abuses and the need for one, the better,

PAGE 66 ---

5) Americans are taxed to death. Literally. Other than the IRS, nothing annoys Americans more than the thought of being taxed simply because you die. Years ago the death tax was thought of as a chance to recoup money from the richest Americans. Today it is one of the most unpopular taxes. Even a plurality of Democrats support its repeal.

6) It IS an issue of FAIRNESS. It's time for Republicans to talk about why the tax system punishes the successful. Is it fair to punish those who create jobs? Is it fair to overtax those who develop, create, expand and enhance? Is our current tax code fair? A majority of Americans would say no.

7) Tax relief for business is tax relief for employees. Americans need to be reminded that small and large businesses are made up of employees. In these tough economic times, when businesses are allowed to keep more of their profits, they can keep more of their employees.

For those who want to tackle the tax simplification debate now, you will be warmly embraced by the American people. But to achieve maximum support, effective tax simplification language MUST contain appeals to three specific principles:

1) FAIRNESS. Americans want to know that the guy in the mansion at the top of the hill is paying his fair share. Most agree that the poor shouldn't pay much at all, but those who can work should not get a free ride. Fairness does not mean soak-the-rich, but it does mean the wealthy must pay their fair share. Fully 73% of the American people believe “fairness” is either the first or second most important principle of tax relief and tax reform.

2) SIMPLICITY. People do not want to pay accountants to prepare their taxes, which even many less affluent taxpayers do because the system has become so complicated. Many Americans are also concerned they are missing deductions to that which they are entitled because the system is so complex. Another benefit to a simplified, tax structure is the large budgetary savings to be had by eliminating or dramatically reducing the size of the IRS. Either way, a majority of Americans (54%) believe simplifying the tax code must be part of tax reform.

3) RELIABILITY. Americans hate how the tax code changes from year to year - and they don't like it. They want a tax code that is free from incessant congressional tinkering each year based solely on the whims of a few special interests and their lobbyists. It is precisely this lack of reliability … its inconsistency, which has contributed to the stunning amount of time that Americans must spend understanding and completing their taxes.

PAGE 67 ---

INTRODUCTION

For most Americans, the point of least favorable contact between them and Washington occurs sometime late in the afternoon of April 15 when they deliver their tax return to the (comparably) friendly local post office. (If we moved tax day to November 1 of each year and ended the process of withholding, conservatives would win permanent majorities all across the country.) It is well past time for us to harness this enthusiasm for the good work that it can accomplish.

And with this opportunity, comes another - a chance at real, meaningful and lasting reform of our tax code - change that goes above and beyond making the presidents tax cuts permanent. Not since 1986, nearly 20 years ago, has there been such an opportunity for massive and meaningful reform.

Through a slew of post-Election focus groups, and two national surveys in the past two weeks, my firm has outlined the language landscape of the Bush tax program and how best to communicate those efforts to the American people. This is a worthy fight. It is a crusade to bring justice to the hardworking-overburdened American taxpayer.

THE TAX RELIEF TRIANGLE

Anytime you talk about tax relief, you should frame it through the three points of what I call the Tax Relief Triangle: the Economy, the Taxpayer, and the Government. You may be tempted to highlight just one or maybe even two of these components, but voters will penalize you for any neglect that a tip of the triangle receives

Voters evaluate tax proposals simultaneously through these multiple lenses - there is no one frame that stands out at the expense of the others. They may not understand the complexities of the double taxation of dividends, but they know enough to realize that tax policy doesn't affect only their pocketbook. Voters understand and evaluate tax policy at both the micro- and macro-level, asking themselves how an issue will touch their own taxes and the economy at large, while also considering the impact it has on our government.

Talking effectively about taxes requires you to touch upon each of these components, but to be most effective. there should be certain nuances to your delivery:

1) TAX SIMPLIFICATION TO BUILD A STRONGER ECONOMY. You should talk about tax relief’s economic impact in the strong forceful terms you usually reserve for national security speeches. The parallels are ripe for exploitation ... the American taxpayer to the American soldier. the President as Commander-in-Chief of our nation's economy ... Alan Greenspan as General Patton - well that may be a bit of a stretch, but the essential idea remains that the days of a more sensitive economic policy are gone. and that tax relief must be framed as the vigorous answer to our economic slumber.

PAGE 68 ---

2) TAX RELIEF TO PROTECT THE HARDWORKING-OVERBURDENED TAXPAYERS Never has there been a taxpayer who was not either hardworking, overburdened, or most likely, both. People identify with this language. Think of how beleaguered our nation looks, sounds and feels around April 15th -- think of the long lines at the post office that night … think of your own parents sitting around the kitchen table going over bills ... and now you and your family ... then think about how thick and maudlin the pathos of the American tax-paying public is. Turn that taxpayer into the underdog hero that they are by evoking this imagery of hard-work and massive burden ..

3) TAX LIMITS TO CURB WASTEFUL WASHINGTON GOVERNMENT SPENDING. It seems that no matter how low taxes go, Americans still think that there is wasteful Washington spending. True, one man's steak is always another man's pork, but in the minds of Americans, taxes fuel this waste. Washington will always misspend the hardworking, overburdened taxpayer's money, and that's not fair. And that is the strongest argument for making the tax cuts permanent.

Finally, let's not forget that tax relief is an exercise of protection. Members of Congress are the American people's stewards, and as such it is their duty to protect the American taxpayer from harm. So say it: Allowing the tax cuts to expire would result in the highest tax increase in American history and result in the single greatest negative financial impact on hardworking American families that Washington could possibly impose.

WORDS THAT WORK

Q: Why shouldn't we raise taxes to address the deficit?

A: Because raising taxes will kill this economy, they will kill the growth that we are enjoying right now. We're on a great glide path for growth, and we need to be encouraging more growth, we need to be cutting more taxes. We need to bring capital gains taxes to zero. We need to increase the dividends tax relief. And we need to completely reform the tax code. We need to do more on the tax front. We don't need to give the government more; we need to put the government on a diet.

-- Tom DeLay

PAGE 69 ---

BE BOLD: THE THREE PRINCIPLES OF TAX REFORM

Perhaps more important than permanent tax relief is the President's clear desire to put our tax code through a more fundamental revision. The American people agree. What frustrates them about the tax code isn't just about the amount of money Americans spend on taxes -- it's about the amount TIME Americans spend on taxes.

Reform must be contextualized for what it is. I've said it before, but it's worth saying again, politicians are notorious for telling you what their plan is, but very few of them will tell you the WHY that underlies it.

It's the politician's Principle Paradox - all of you are in these positions because of your principles, so why don't you speak of them more often? Principles are hard things to disagree with, just look at the earlier list above and you'll see what I mean. How can you disagree with FAIRNESS, SIMPLICITY, and RELIABILITY? So create a direct link between these principles that resonate with the vast majority of Americans and the reforms you propose:

FAIRNESS: Always emphasize that tax reform is an issue of fairness. Admittedly, talking about fairness has never been the GOP's forte, but here (along with Social Security's generational fairness) is an opportunity to appeal to those who rank fairness as their highest priority.

It's time for Republicans to talk about why the tax system punishes the successful. Is it fair to punish those who create jobs? Is it fair to overtax those who develop, create, expand and enhance? Is our current tax code fair? Is it right •to tax Americans almost literally to death? A majority of Americans would say no.

WORDS THAT WORK

"The most important thing about tax reform is fairness ­allowing people to realize their dreams. That's what our tax code has been preventing. We're the freest, most optimistic country in the world. We offer incredible opportunities to so many people, and yet we have a tax code and a tax system that penalizes people for working and penalizes people for being entrepreneurial We have people who come to this country to realize their dreams, yet too often it's the tax code or other government regulations that prevent them from realizing those dreams. That's simply not fair."

-- Congressman Mike Ferguson

There is nothing more fair than encouraging the uninhibited pursuit of the American dream. Punishing success is not fair, no matter the circumstances, and its time for the GOP to say as much. Taxing the American entrepreneur into extinction is no way to invigorate this country, let alone its economy.

PAGE 70 ---

SIMPLICITY: When pressed for what they think would be a fair tax rate, most would readily agree to something in the neighborhood of 20 percent. But what frustrates Americans most is not so much the income tax rate as it is the complexity of the system and the perception that the rich have expensive tax attorneys and fancy accountants to navigate the 7,000-page Internal Revenue Code. Americans work day in and day out to pay for Washington programs they would not wish on their worst enemies and feel shortchanged by not finding all the tax deductions they are entitled to.

GEORGE W. BUSH WORDS THAT WORK

"Another drag on our economy is the current tax code, which is a complicated mess - filled with special interest loopholes, saddling our people with more than six billion hours of paperwork and headache every year. The American people deserve - and our economic future demands - a simpler, fairer, pro-growth system."

There are a number of “fun” facts that you or your staff can dig up regarding the labyrinthine nature of our tax code. Use them to their fullest advantage. Voters will inevitably respond.

MORE WORDS THAT WORK

Do we really need a tax code that is almost 6,000 pages long?

A tax code that is 2 million, 800 thousand words -longer than the Bible, longer than the complete works of Shakespeare?

Is it fair that more and more Americans have to hire professional accountants because they cannot understand the tax code and they are afraid of being punished if they make a mistake?

Can we produce a better tax code, a tax code that is cleaner, simpler and fairer? I think so. I think it's time to restore common sense to the IRS and the federal tax code.

One of the lessons of 2004 is that America is still ripe for fundamental tax reform and tax simplification, and no one will weep for the IRS agents, tax attorneys and CP As who would rather keep a complicated, confusing and corrupt tax system in place than go out and get another job.

PAGE 71 ---

RELIABILITY: The hallmark of any good policy should be reliability. It does hardworking, overburdened taxpayers little good to pass tax cuts today that mayor may not exist next year. As it now stands, our tax policy fails this commonsense test - it simply isn't reliable. How else can you explain a system in which there is an ideal year to die! Don't be shy about pointing out the absurdity of this. Taxpayers want to know that the rates they pay one year aren't going to suddenly go up in the next year,

WORDS THAT WORK

If someone pays higher taxes tomorrow than they're paying today, they got a tax hike, their taxes were raised and I think that's the wrong idea. We need to create an economy that lifts all boats, where everybody has an opportunity to succeed and grow and realize their dreams. If we're raising people's taxes we're taking more of their hard earned money.

I think people should be able to plan for the future and be able to plan for the future and be able to say that 5, 10 years from now they won't be paying more in taxes than they're paying today because of some artificial date that was created in Washington D.C. We should be able to ten people honestly and in a straight forward way 'we're lowering your taxes and we're doing it because we believe you can" make better decisions about how to spend your money than folks in Washington can,' and then say, 'well, we think you can spend your money well until this certain date and after that we think Washington can spend your money better.'"

-- Congressman Mike Ferguson

If principles aren't enough, just apply them to these appeals. At their best, they will not only make your case for tax reform, but also make the case for a wholesale replacement of the federal income tax system.

1) The current system is too costly and too complex. The income tax system is so complex that no one, not even the experts, truly understands it. Compliance is difficult and costly (estimated at more than $225 billion), and the burden sits fully on the shoulders of American taxpayers. To make matters worse, Congress continues to alter the tax code, resulting in consequences that are not immediately obvious to the average American.

2) The IRS is an intrusive, unpredictable, threatening bureaucracy. According to Democratic pollster Peter Hart, few things frighten Americans more than to receive an IRS notice in the mail. Democrats made it that way. Republicans can change it. Let's turn that public fear into a crusade for tax justice.

PAGE 72 ---

Americans should not fear their own government, but millions of Americans are afraid of the IRS. With its virtually unchecked enforcement and audit powers, the potential of an IRS audit strikes fear into the hearts of honest taxpayers. That is simply wrong.

3) Politicians and lobbyists are allowed to pick winners and losers. Politicians have filled the tax code with loopholes supported by high-priced lobbyists for their clients and other special interests. We need a new system that removes the politics from tax policy.

True, the Democrats will accuse you of "risky schemes." Respond: "The only scheme is Washington's insatiable appetite for more and more of your hard-earned income. The infamous "risky scheme" formulation comes straight from Democratic focus groups. But if you make the choice between the hardworking, overburdened taxpayer and the Washington bureaucrats, you win every time. They will end up defending the tax code, and you will be defending fairness, simplicity and reliability.

Remember, by an incredible 4 to-1 ratio, Americans believe that deficits result from the government spending too much, not taxing too little. Most American families balance their own checkbooks and live on limited budgets. What they wonder is: "Why can't Washington?" The surest way to truly put the nation's fiscal house in order is to fix the tax system. Our research finds enormous political support for sweeping tax simplification.

WHEN ALL ELSE FAILS, GO AFTER THE IRS

"I’m as mad as hell, and I'm not going to take it anymore. "

-- Howard Beal in Network -- written by Pandy Chayefsky

Don't forget the Internal Revenue Service. Nothing guarantees more applause and support than calls to abolish the IRS, and it fits PERFECTLY with the GOP's agenda of tax simplification. If you have any doubt about the unpopularity of the IRS, consider the following:

* Most voters would rather have their purses or wallets stolen than be audited by the IRS. That's correct. More than half of all Americans would rather be mugged than face an audit by this mysterious and hated government institution. And what's more, over half (58%) of American voters considered an IRS audit more unpleasant than a root canal.

* No phrase by any political candidate registers a more positive response than the following nine words: "We will end the IRS as we know it" None. No matter who says it, it consistently scores off the charts!

Tax relief remains the bedrock of our party. In the past, Democrats have successfully co, opted many GOP issues, from ending big government to reforming welfare to reducing crime. The IRS is in some ways the last remaining symbol that differentiates the party of Lincoln and Reagan from the party of Hillary Clinton and Lyndon Johnson.

PAGE 73 ---

Congress needs to shine a bright light on how the IRS operates. We should focus on this agency that has a negative impact on our day-to-day lives. The IRS should be our symbol of what's wrong with Washington. And we should emphasize the negative impact that our complicated tax code and Byzantine IRS has on our national economy. In other words, frame a rally against the IRS inside of the tax relief triangle discussed earlier.

Imagine the public impact of exposing IRS practices and abuses. Consider the benefits of a new round of public hearings that highlight Americans that have been victims of the IRS. It worked before, and I guarantee that it will work again.

You cannot hope to simplify the tax code without publicly castigating the IRS. It should be a major focus of Republican efforts to simplify the code over the remainder of President Bush's administration. Allocate significant time and attention to this political winner - not just because it makes sense politically, but because it's the right thing to do.

THE DEATH TAX

"The death tax deserves to die."

While the general public is giving the economy mixed reviews, an overwhelming majority of people are sure about one thing. In no uncertain terms, they are opposed to the death tax as it stands today.

No tax reform proposal is easier to explain than repeal of the estate tax - which every reader should call the "death tax." From "taxing the American Dream" to "you shouldn't have to visit the undertaker and the taxman on the same day,” the language of death tax repeal is easy for working and retired Americans to understand and appreciate.

WORDS THAT WORK

"Benjamin Franklin, perhaps the wisest of our founding fathers, said there were two certainties in life: death and taxes. But I do not believe even Dr. Franklin, with his prescience, could have told us that today, both would occur at the same time."

At the outset, it is important to explain the principles behind your desire to repeal the death tax. In fact, nothing is more important to your argument than explaining why you wish to make this change in the tax code. If you get the principles right, public support will follow. Otherwise, you will open yourself to liberal accusations of selfishness and solicitousness toward the rich at the expense of everyone else. So start with four "common sense" principles:

PAGE 74 ---

THE COMMON SENSE PRINCIPLES OF THE DEATH TAX

1) The death tax is the wrong tax. It accounts for just one percent of the nation's revenues, and dollar for dollar, it costs more to collect than any other federal tax.

2) It comes at the wrong time. A core principle behind repealing the death tax is the idea that people should not be further burdened at the most difficult times of their lives. Mourning families have enough grief when their loved ones die. The IRS doesn't need to pile more on by giving them something else to grieve about.

3) It hurts the wrong people. If you saved for the future, put away money for your children, built a small business, ran a family f, or achieved the American Dream in other ways, the death tax punishes you and prevents you from sharing your dream and hard work with your loved ones.

4) It helps the wrong people. The only people helped by the estate tax are the army of fancy lawyers, expensive tax accountants and IRS agents.

It is truly remarkable just how easy it is to convince people of the absurdity of the death tax if you stick to these principles. It's such a beautiful sentence: the Death Tax is the wrong tax at the wrong time and hurts the wrong people. As Tom DeLay likes to say, "the family shouldn't have to visit the tax collector at the same time they are visiting the under taker."

WORDS THAT WORK

The death tax is the wrong tax, hitting people at the wrong time. Consider the principle of it: if you've worked your whole life, worked hard, saved, built a business, and had a family farm; then, to have Uncle Sam step in at your death and keep your family from having it? That's just wrong -- the principle of the death tax is simply wrong.

-- Congressman Kevin Brad

WORDS THAT WORK

To be taxed when you die is just flat wrong. People have worked hard all of their lives, saved all their lives and want to pass something on to their children and their grandchildren. They've already paid taxes that money. They shouldn't be taxed again just because they died.

-- Senator John Ensign

PAGE 75 ---

2005 PUBLIC OPINION

* 64 % of Americans support eliminating the federal estate tax right off the bat without hearing any pro or con arguments.

* The American public hates the Death Tax SO MUCH that 56% would support its repeal even if it meant a temporary increase in the federal deficit.

* 81 % agree that "inheritance taxes are an extreme form of taxation. The tax rate, as high as 470/0, is higher than even the highest federal income tax rates - and that's unfair."

* 80% believe "inheritance taxes represent double and triple taxation. It is unfair for people to pay taxes on their income, and then more taxes on what they save, and a third time when they die."

* 70% agree that "Death taxes are unfair because they single out those who save and invest for no reason other than the fact that they became successful and then died."

* Finally, after considering both sides of the issue, 85% favor a change in the status quo, advocating either complete elimination or reduction. Only 13% favor keeping the tax as is.

OTHER TAX LANGUAGE

1) Personalize, personalize, personalize. The best way to combat criticism of tax relief is through personalizing it; i.e., discussing real, down-to-earth families, small businesses and individuals that are hurt by over-taxation. And the best way to do this is to name every tax that every American has to face:

"When you wake up in the morning and drink that first cup of coffee, you pay a sales tax. When you start your car, you pay an automobile tax. Drive to work, you pay a gas tax At work, you pay an income tax and a payroll tax. You get home at night, you pay a property tax. Flip on the light - you're paying an electricity tax Turn on the TV - you pay a cable tax. Make a telephone call, you pay a utility tax. Brush your teeth, you'll pay a water tax. Even when you die, you pay a death tax. We’re an overtaxed nation and hardworking Americans deserve a break."

PAGE 76 ---

2) It's not about what YOU may receive - it's about others may be forced to leave behind. Only 38% of Americans expect to be the beneficiary of an estate or inheritance, yet 85% want it eliminated or reduced. Americans don't like it when life-long dreams are shattered by the taxman - whether they are farms or small businesses.

No one will worry too much about protecting America's wealthiest families. But everyone will want to help fanners and small businesses. In fact, other than teachers and druggists, no occupation is more popular than that of small business owner. Why? Because no other occupation involves taking more risks and putting in more hours than owning a small business does. "And nothing penalizes the small business owner more than the death tax."

WORDS THAT WORK

"Imagine owning a family farm that you have worked on for 30 years. You have built and developed the land with the hope of passing it along to your children so that they will have a better life. But after your death, your children tragically find that the farm will not be staying in the family, but will instead be going on the auction block to payoff the IRS. This is not a rare occurrence. Many family farms must be sold off to pay the federal taxes due on the property. It's just plain wrong.

"Death taxes hit the family farmer particularly hard. The family farmer may be cash poor, but he is tradition-rich. The value of a family farm lies not in the IRS valuation of equipment and land, but in the farm's ability to produce. Farmers make their livings growing food and fiber, not speculating in land and equipment.”

MORE WORDS THAT WORK

"The death tax most affects small business, farmers, and ranchers and that's where eight out of ten new jobs come from. It's the mom and pop businesses that close down.

Half of the value in a company is taken away in the death tax. Sure, if you die in 2010, that's OK because we've eliminated the death tax that year. But if you die in 2011 and we don't make the death tax relief permanent, you 'II lose your company again. That's no way to run a government.

-- Congresswoman Heather Wilson

PAGE 77 ---

JUST SAY NO TO NEW TAXES

President Bush came to the White House four years ago with a promise of tax relief for America's hardworking families. Since then, we have provided our nation with a tax relief package that bas stirred the economy from its slumber, fattened our wallets, and put our government on a diet; making it leaner and stronger.

But 2011 is quickly approaching when the tax relief is set to expire and our hardworking, overburdened taxpayers will be faced with the single biggest tax increase in history. There is only one way to prevent this from happening: make President Bush's tax relief permanent.

Look, what differentiates me from most Democrats is that I fundamentally believe, America is already an overtaxed nation and we need to lessen that burden wherever and whenever we can. Taxes affect every American who works hard and they affect us every single day.

I’ve had enough.

It's high time for us to say no to the largest tax hike in history and make President Bush's tax relief permanent. Keeping our taxes down will continue to fuel our economy's steady comeback. Keeping our taxes down will allow America's overburdened taxpayers to keep more of YOUR own hard-earned money in YOUR wallet. Keeping taxes down will force Washington to trim the fat on wasteful government spending.

I firmly believe that America's working families have the right to keep more of their own money. President Bush's tax relief program, passed four years ago by bipartisan majorities in Congress, provides tax relief throughout your life, from helping you to raise your children to assisting in your preparations for retirement.

Thanks to President Bush's tax relief program, a young, recently married couple will not pay more taxes simply because they decided to get married. Government, through the strong arm of the taxman, should not penalize a man and woman simply because they choose to tie the knot and start a family. The marriage penalty is wrong - and now, thanks to President Bush, it's gone. Let's keep it that way.

Second, the president's plan increased the per child family tax credit, so that hard working parents can spend a little more time with their kids, and a little bit less time working for Washington. I happen to think that's a good idea, worthy of keeping in our tax code. Let's keep it there.

Third, since we believe the government should reward people for doing the right thing, we have expanded individual retirement accounts to help Americans save for and then enjoy their retirement years. Only in America would the government be fighting over whether to encourage or discourage retirement savings. Republicans believe you shouldn't be penalized for saving for your future, and we vow to continue this fight.

PAGE 78 ---

(cont.)

Fourth, Benjamin Franklin, perhaps the wisest of our founding fathers, said there were two certainties in life: death and taxes. But I do not believe even Dr. Franklin, with his prescience, could have told us that today, both would occur at the same time.

The death tax is simply unfair. It tells every American that no matter how hard you work or how wisely you manage your affairs, in the end the federal government is going to take it away. The death tax is double and, in some cases triple, taxation. It punishes hard work and savings, and it fails to raise the kind of revenues that might conceivably justify some of the damage it causes. It has been destroying businesses and ruining lives for four generations. Let us not make this mistake with our children, and put a stake directly through the heart of the death tax so it does not return to haunt us again.

Because we believe a spouse or a child should not have to visit the taxman and the undertaker on the same day, we will fight to put an end to the death tax once and for all. It expires in 2010. We don't want it reborn in 2011.

Finally, when I say April 15th, you should not shudder. The IRS is an intrusive, unpredictable, threatening bureaucracy and you should not fear your own government.

If we are going to effectively reform the complicated mess that is the tax code, then we have to reform the complicated mess that created it.

The fact is, a majority of Americans think that an IRS audit would be a more unpleasant experience than a root canal? That's not right. When Americans are as likely to believe that having their wallet or purse stolen is as personally painful as an IRS audit, it is high time we put 811 end to the IRS as have Come to know and fear it. It's time for a change.
As a matter of principle, I believe that the federal tax code should be fair, simple, and reliable.

Why should a system punish the successful? Why should it punish those who create jobs? Why is it fair to overtax those who develop, create, and expand? I can't answer those questions, and neither can Washington. And that's why it's time for a change.

And don't even get me started on the complexity of the tax code! If ever there was an unfair shake for hardworking, overburdened taxpayers, this is it. We don't need a tax code that is longer than the Bible or the complete works of Shakespeare? We don't need a tax code that requires more and more Americans to hire a professional accountant to understand the tax code and spend money in order to correctly pay the government. And that's why it's time for a change.

PAGE 79 ---

(cont.)

American's know that in their personal lives, planning is the key to financial success. But how can Americans begin to plan their finances when the system is not reliable? Taxpayers need to know that the rates they pay one year aren't going to suddenly go up in the next year.

For these reasons, I think it is essential to produce a better tax code that is cleaner, simpler and fairer; a system that removes the politics from tax policy. I think its time to restore common sense to the IRS and the federal tax code.

We can count on the fact that those who are hooked on spending your tax dollars will not give them up easily. They will argue that, for your own good, you should let them keep what they have already seized by force.

Don't believe them. Families have a better idea of how to spend their money than does the federal government, thousands of miles away. By standing up to the taxman, we are standing up for hardworking, overburdened families.

It's hard to raise a family these days. The world has become a more complicated, threatening place, and parents struggling to make ends meet deserve every break we can give them. Some common sense tax relief is the least Washington can do to return power and responsibility to those doing the toughest job of all in this country: parenting.

It is possible to reform the federal tax code into a user-friendly system that is fair, simple, and reliable. If we wish to stand for what is right, we can do nothing less.

PAGE 80 ---

14 “FUN” FACTS ABOUT THE FEDERAL TAX CODE

* The federal tax code is more than 7 times longer than the Bible.

* The tax code itself contains 2.8 million words

* There are 17,000 pages of tax regulations

* All together, it contains 45,662 pages of tax laws, regulations, and related documentation

* The Tax Foundation estimates that tax code compliance costs amounted to about $200 billion in 2002. That means it costs 20 cents to collect each dollar of taxes.

* By 2007 the compliance cost is estimated to be at $350 billion.

* Over half of individual taxpayers now use a paid preparer for their income tax returns

* In 1954 there were 103 sections of the tax code; today there are 725... That’s an increase of 604%

* The Federal Tax Code is lengthier than the Encyclopedia Britannica

* The IRS has more employees to interpret and enforce the tax code than the Environmental Protection Agency, the Occupational Safety and Health Administration, the FBI, the Drug Enforcement Agency, the Food and Drug Administration, and the Bureau of Alcohol, Tobacco, and Firearms COMBINED

* The IRS receives more than 110 million phone calls a year for help by taxpayers.

* In 1999 the IRS was only able to answer 73% of the inquiries correctly

* Complying with the federal tax requirements wastes 6 billion hours each year as families and businesses fill out tax forms, keep records, and learn tax rules.

* The federal tax code has endured more than 6,000 changes since 1986.

Frank Luntz Republican Playbook (New American Lexicon) -- Searchable Text-Version

• PART I "Introduction"
  
• PART II "Setting the Context and Tone"
  
• PART III "Growth, Prosperity, & Restore Energy and Economic Security"
  
• PART IV "International Trade: Promoting America's Competitiveness"
  
• PART V "The Budget: Ending Wasteful Washington Spending"
  
• PART VI "Tax Relief & Simplification"
  
• PART VII "Social Security = Retirement Security" (Part a)
  
• PART VII "Social Security = Retirement Security" (Part b)
  
• PART VIII "Lawsuit Abuse Reform: A Commonsense Approach"
  
• PART IX "An Energy Policy for the 21st Century"
  
• PART X "Appendix: The 14 Words Never to Use"
  

Also Available in:
PDF
Word 2003 (671kb)
RTF (908kb)
RTF (zipped--185kb)
XML (1.53mb)