Tax Relief & Simplification

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." 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 hike 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:

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.

"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."

"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 underway and jobs are coming back in record numbers, but uncertainty is still with us. A tax hike will only hike uncertainty and anxiety."

The IRS is still the most hated institution of government. You, cannot overdo it when it 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 IRS reform, the better.

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.

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.

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:

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.

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 "simple" 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.

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.