It’s the fundamental question of American politics: How much does each of us owe in taxes to our government? This nation was conceived in a tax revolt, and many Americans today are still up in arms over the unfairness and mind-numbing complexity of our tax system. This week we watched Congress grapple with the high and the low of it, without coming close to lifting the fog. Some expected fireworks as Apple CEO Tim Cook appeared before a Senate panel (see Business: The news at a glance) to address the uncomfortable fact that his company records 64 percent of its global income in Ireland, where it has a sweet tax deal. But Cook disarmed his challengers with an argument that passes the smell test for anyone who has ever read a U.S. tax regulation: It’s not that simple. Soon all the senators were gushing about how much they loved their iPads.
It will be a cold day in hell when anyone gushes about how much they love the IRS, now under fire for targeting Tea Party groups seeking tax-exempt status (see Main stories). The American people may have little sympathy for a company using Ivy League tax lawyers to slalom through the corporate tax code. But what really rankles most folks is our tax system itself, which invites abuse of all kinds. The real message of both the Tea Party scandal and Apple’s tax avoidance is the same: We need a simpler, clearer tax code. I hope we can reach one without another revolt.
P.S. In this space two weeks ago, I incorrectly stated that the University of Louisville had won this year’s NCAA women’s basketball championship, when in fact its team was clobbered in the final by the University of Connecticut. My apologies.
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James Graff