Implementing a

1
Implementing a Return-Free Tax Filing Scheme

• Presentation to the Presidents Advisory Panel on
  Federal Tax Reform
• Grover Norquist
• President
• Americans for Tax Reform
• May 17, 2005

2
The Current System

• Tax filing is citizen-based taxpayers tell the
  government what they earned and owe

3
Under Return-Free

• Tax filing would be government-based the burden
  would be on the taxpayer to challenge the
  governments findings -- essentially an audit of
  every single American taxpayer

4
The Fox Would Guard the Henhouse

• The same agency that collects taxes would be the
  tax preparer the motivation to maximize revenue
  would dominate both ends of the process

5
Return-Free is a Tax Increase

• The true goal is to increase revenue. The
  government knows few taxpayers will challenge its
  findings

6
Taxes Should be Visible

• Doing taxes keeps citizens aware of the tax
  burden imposed upon them by the government. A
  Return-Free scheme would allow the government to
  raise revenues invisibly

7
The California Example

• The State would not guarantee the accuracy of the
  returns it prepared the taxpayer was removed
  from the process, but left with the
  responsibility
• The pilot program achieved 50 less uptake than
  planned
• Comments by CA officials tell us that the true
  aim was increased revenue