A change in tax code is essential

Another Republican presidential candidate debate is behind us. Of course, there are others to follow, but unless circumstances change they will not be hosted by the NBC network. As potential viewers (and potential voters), we will not be in the loop when choices of network sponsors or questioners are made. Maybe that is just as well because who would have doubted the choice of John Harwood for one of the panel for CNBC? Guess that just goes to show we all have a place where we function well and need to be careful when we get out of that box. The questioning by all the panelists was poor to say the least.

But the real purpose of this is to deal with a question that is a constant topic of all the Republican affairs -- changing the income tax code. There are many things about our current tax laws that need a serious review if not a complete change. Hidden within the reported 74,608 pages are rules that provide special exemptions for tax payers at every economic income level. But, because the laws are passed by elected political representatives they are going to be swayed by, and for, those people or organizations that contribute large amounts of money to the political war chests of those who vote in appropriate support of the contributor. Like a merry-go-round, where the horse goes over the same circle with no hope of ever breaking free, our process of governing gives us the same result over and over. You and I will continue to be governed by those chosen by the wealthy individuals, families and/or businesses. Jeb Bush and Hillary Clinton both are supported by "Super Pacs" put together by anonymous donors who want to influence our elections' outcome. That is just the way the system works and changing it is going to be difficult.

Until we have a major change in our national attitude, only minor changes in the tax code will be enacted. If, as so many of the candidates of both parties claim, some of our largest corporations have billions of dollars in profits overseas, held there to avoid our high income tax rate, who is actually responsible? Supposedly lowering the tax rate from 35 percent to a more manageable or less aggressive bracket will/would entice the corporations to bring those funds back to America and invest them here. The primary purpose of the business is to make a profit and generally we can assume the second purpose is to avoid taxes on the profit. That is why we have depreciation, capital gains tax rates and business write-offs, like corporate jets and company condominiums in The Bahamas.

Until the attitude of business leaders (you can pick the type of enterprise, banking, internet, manufacturing, etc.) changes to allow for a measurement of their performance to include a greater emphasis on social needs, major changes will be hard to enact.

It is the people at the top of these corporations that get to decide how to direct the corporation's resources (as well as their own money) to the Super-Pacs, to protect their interest -- which they will tell you should also benefit you and your few shares of stock, if you are lucky enough to own any.

This is not intended as criticism, just a look at where we have come since the end of World War II. According to the Washington Examiner in a Sunday, Oct. 25, 2015, article, the growth of our tax code started out at about 400 pages in its first year. It grew to 504 pages in the first 26 years. During the World War II period, it grew to over 8,200 pages or approximately eight (8) times its size before. In 1984, it was about 26,300 pages and it has grown in the 31 years since to our current number of over 74,608 pages. That doesn't give me much hope that changes to simplify the process are going to be implemented anytime soon, no matter what the candidates promise.

•••

Editor's note: Leo Lynch is an award-winning columnist. He is a native of Benton County has deep roots in northwest Arkansas. He is a retired industrial engineer and former Justice of the Peace. He can be contacted at [email protected].

Editorial on 11/04/2015