Reforming (and Saving) the IRS by Respecting the Public's Right to Know
The current controversy involving possible political targeting by the IRS in administering the exempt organization (EO) tax laws is simply the latest in a long succession of similar allegations spanning at least five decades. This article proposes to address the problem through increased transparency of the IRS’s administrative actions involving EOs. Greater transparency responds directly to the public’s frustration in not being able to monitor the agency and gain confidence that the laws are being applied in an even-handed manner.Proposals to increase the transparency of government commonly confront some claimed governmental interest in secrecy, such as a national security or law enforcement concern. Transparency of the government’s tax decisions, however, encounters the further problem that it violates the privacy rights of taxpayers. This latter clash arises because the government’s tax administration decisions generally turn on the information it has extracted under compulsion from taxpayers. Thus, meaningful transparency of one (the government’s tax decisions) almost necessarily requires meaningful transparency of the other (taxpayer tax return information). Fortunately, Congress has long recognized good policy reasons to make public a substantial amount of EO tax return information. Thus, slight liberalizations of the existing disclosure rules for such information may allow sufficient transparency to satisfy the public’s right to know in the precise area of the law that has generated the most controversy. Opening up more EO tax return information and IRS EO decision-making to public scrutiny would tend to deter IRS misbehavior, reduce suspicions of such misconduct, and promote fuller communication both to establish any impropriety and avert false charges against the agency.
Making the Internal Revenue Service Work
This is an Article about how to redesign the federal tax system so that the Internal Revenue Service (IRS) can administer it more effectively given that Congress is only willing to let the IRS have around 82,000 employees and a $12 billion budget. As the IRS Oversight Board and the National Taxpayer Advocate have frequently emphasized, the United States underinvests in the IRS. Underinvesting means that taxpayer services are suffering and that tax enforcement has been significantly weakened.With budget deficits for “as far as the eye can see” and the recent IRS troubles with tax-exempt political organizations, the prospects for increased funding for the IRS are remote. In this Article, we consider a variety of approaches that would make it easier for the IRS to raise and collect revenue, and we offer a number of recommendations for legislative and administrative changes. For example, we recommend simplifying the tax system, enhancing third-party reporting, and streamlining the tax-filing and dispute-resolution procedures.In short, this Article discusses how the tax system should be designed so that it can work with a modestly-funded tax administrator. Part II of this Article provides an overview of the federal tax system, and Part III of this Article provides an overview of tax administration. Part IV of this Article discusses the key problems with current tax administration. Finally, Part V of this Article offers a number of recommendations for change, including some that would require legislation and some that could be achieved administratively.
Athenian Democracy at War
Classical Athens perfected direct democracy. The plays of this ancient Greek state are still staged today. These achievements are rightly revered. Less well known is the other side of this success story. Democratic Athens completely transformed warfare and became a superpower. The Athenian armed forces were unmatched in size and professionalism. This book explores the major reasons behind this military success. It shows how democracy helped the Athenians to be better soldiers. For the first time David M. Pritchard studies, together, all four branches of the armed forces. He focuses on the background of those who fought Athens' wars and on what they thought about doing so. His book reveals the common practices that Athens used right across the armed forces and shows how Athens' pro-war culture had a big impact on civilian life. The book puts the study of Athenian democracy at war on an entirely new footing.