Make Tax Day and Election Day Count!

A quick look at a calendar shows that Tax Filing Day and Election Day are about as far apart from each other as possible. As a result, taxpayers often end up with candidates who give lip service to the idea of lower (or at least simpler) taxes during campaign season, but who rarely have to deal with the immediate consequences of failing to back up words with deeds when they are in office. The complicated and confusing 67,204-page Tax Code is a direct outgrowth of this separation.

In response, Representative Roscoe Bartlett (R-MD) has sponsored a bill (H.R. 77) that would move the deadline for federal income-tax returns from mid-April to the first Monday in November -- the day before Election Day. The reason is simple: to strengthen the link between the politicians we elect and the taxes we pay for the government they shape. Reinforcing this connection might have an impact on who is elected to serve in public office, which in turn influences what tax reforms are passed into law. This structural shift could be a great boon for the policy-centered changes taxpayers have long sought.

Given the size, scope, and complexity of tax filing and collection, putting a date-shift into practice would admittedly be a large undertaking. Yet it certainly would be less complicated than other governmental activities (like futile attempts to wipe out poverty through massive wealth transfers). Members of Congress have moved Tax Filing Day twice in the past -- please join us in asking them to move it again.

Sample Letter for Campaign

Subject: Move Tax Filing Day Closer to Election Day

Dear [ Decision Maker ] ,

I urge you to support H.R. 77, which would change the deadline for income tax returns for calendar-year taxpayers from April to the first Monday in November.

It's an easy fact to miss, but right now there is a half-a-year wait between when we pay our taxes and when we go to vote. As such, politicians don't have any immediate pressure to keep campaign promises to simplify our horribly complicated Tax Code, and we end up suffering at tax filing time.

It is common sense that Americans should pay their bill for government (taxes) at the same time they pick out their representatives during election season. Most stores demand payment upon delivery, and taxpayers should have that privilege as well.

Making tax time and election time one in the same will have some transition costs, but the result would make tax simplification a top campaign issue. Making the Tax Code less complex is something every American can identify with regardless of political affiliation. For the sake of all taxpayers please work to pass H.R. 77

Sincerely,

Campaign Launched:
April 16, 2007



Background Information

The passage of time between when taxpayers drop a tax return in the mailbox and when they drop a vote card in the ballot box provides lawmakers with insulation from simmering discontent with the Tax Code. Unsurprisingly, taxpayers often end up with elected officials who talk a good game about lower, simpler taxes, but fail to act due to the lack of political penalties for not following through.

In order to change this situation for the better, Representative Roscoe Bartlett (R-MD) has introduced a bill (H.R. 77) to move the deadline for income tax returns for calendar-year taxpayers from mid-April to the first Monday in November.

How would this shift work? If the move took place between 2008 and 2009, taxpayers could file returns by April 15, 2008 and then not be required to file again until November 2009. The extra seven months would give time for the government and individuals to effect the change. Withholding will continue to provide receipts during the entire period, while some taxpayers may even earn extra interest on their money.

How much would the shift cost? Using data from events such as the "Y2K" computer conversion, previous IRS notification efforts for last-minute tax law changes, and employee retraining, the National Taxpayers Union calculated that an April-to-November date shift would cost a maximum of $2.04 billion -- or, less than one-fifth of the IRS's current budget. Applying this projection to state tax agency budgets, NTU determined that state transition costs would run under $1 billion at that level.

While shifting Tax Filing Day would come with some headaches and related expenses, complying with the Tax Code already causes significant burdens for individuals and the private sector, to the tune of more than 6.6 billion paperwork hours imposed by the Treasury Department in 2007 alone. Many taxpayers would gladly tolerate a few years of transition in return for future tax policy changes that could make filing taxes more transparent and simple.

The bottom line is that if greater cognizance of the tax law's complexity and cost creates sufficient outrage to make simplification a top election issue, then H.R. 77 will have paid for itself many times over.