Senators on Spring Break
Where are your tax dollars going? Tripod catches up with a group of Senators touring Costa Rica at the taxpayers' expense.

The IRS on the Web: It's surprising to find a government site that's snazzier that most commercial sites. Cheers to the IRS!?

After filing our tax returns every April, we are often left with a renewed sense of resentment over the bite the IRS takes out of our annual income. By some estimates, Americans spend a couple of working hours each day just to earn the money they must fork over to the government in taxes. Even if you believe that the taxes you pay are worth it to maintain a reliable social safety net and strong defense, it's hard not to be susceptible around this time of year to the tax-trashing lure.

Which is exactly what Republicans are banking on. The traditionally anti-tax party currently has a majority in Congress, and is determined to lower the tax burden of working Americans. The Republican budget originally submitted to President Clinton contained $245 billion in tax cuts. Seizing on tax season, Congressional Republicans have been trying to draw attention to their efforts to lessen the bite the government takes out of our paychecks every year. Here's a look at some recent taxpayer-friendly proposals in Congress, and some backers of larger tax reform.

TAX INCREASE "SUPERMAJORITY" AMENDMENT
Nuts and Bolts: A proposed amendment to the Constitution would require a three-fifths "supermajority" to pass tax increases in Congress, rather than the simple majority currently needed to approve legislation. The supermajority would be waived for tax increases that are offset by equal or greater tax reductions. It would also not apply to "de minimis" (minor) increases. Constitutional amendments themselves require a two-thirds majority in both houses of Congress for approval.

Status: The House defeated the amendment, which needed 280 votes for passage, 243-177. Nevertheless, Senate Majority Leader Bob Dole has said he will bring the amendment to a vote before the Senate, although it is not clear when. While the House did not send the amendment through any committees, the Senate Judiciary Committee, chaired by Senator Orrin Hatch (R-UT), is holding hearings on the measure, which has been sponsored by Sen. Jon Kyl, R-AZ. (In January 1995 the House did pass an institutional rule requiring a supermajority to approve tax increases, but it is often waived and a Constitutional amendment is considered more binding. The provision was also originally part of a Republican balanced budget amendment which failed last year.)

Inside Scoop: While the GOP is sincerely committed to major tax cuts, party leaders knew the amendment, sponsored by Rep. Joe Barton, R-TX, would fail. But Republicans had a field day with the publicity surrounding April 15 -- the deadline for filing federal tax returns and the day the supermajority vote was held. Preferring not to be seen as advocates of easy tax increases, Democrats, led by Rep. David Skaggs, CO attacked the proposal as an irresponsibly casual attempt to alter the Constitution. A few Republicans had reservations about the possible effect the amendment could have on their plans for future tax reform. House Ways and Means Committee chairman Bill Archer of Texas had to persuade Barton to reword the bill before the vote.

TAXPAYER'S BILL OF RIGHTS
Nuts and Bolts: Designed to expand the leverage of taxpayers in their dealings with the IRS, this bill would create a special office within the agency to help resolve disputes between taxpayers and the agency, and would raise the amount taxpayers could sue the agency for reckless collection tactics from $100,000 to $1 million. Taxpayers would also find it easier to get reimbursed for their legal costs after winning a court verdict against the IRS. In addition, they would be empowered to sue anyone, such as an employer, who filed false information about their earnings. The bill contains a slew of other minor provisions, including ones which would allow the IRS to use private postal carriers to deliver reimbursements and would require the agency to send more frequent notices of overdue taxes rather than let debts accumulate.

Status: The House and Senate passed this bill last year as part of the much larger budget bill sent to and vetoed by President Clinton. On April 16 the House passed the bill, 425-0. The Senate is expected to vote on it again, but Senate Finance Committee chairman William Roth, R-DE, has said he might attach it to another large budget bill. President Clinton would sign the individual bill, but is likely to veto another large Republican budget.

Inside Scoop: Republicans have become highly suspicious of government agencies and their powers of enforcement. Last year Rep. Tom DeLay, R-TX, drew a comparison between the Environmental Protection Agency and the Gestapo. While most Americans don't hold such an extreme view, IRS-bashing is an extremely popular sport. And this bill does enjoy strong support from both parties. However, since the first version of the bill was passed last year, the IRS has voluntarily adopted many of its reforms.

THEIR PET PLANS
Several Republican leaders in Congress have their own ideas for major changes in the tax code. Thanks in part to Steve Forbes, whose campaign for the Republican presidential nomination drew support for replacing the current system with a flat tax, some of the biggest overhauling in years may be around the corner, especially if Bob Dole defeats Bill Clinton in November.

Bill Archer: Chairman of the House Ways and Means Committee, he is a Congressional master of the tax code, and was central to the formulation of the failed "supermajority" amendment. Archer wants to see the income tax scrapped in favor of a national sales tax. Archer also wants to kill off the alternative minimum tax (AMT), which basically ensures that no matter how many loopholes a big company can exploit, it must still pay some taxes to the government. Ending the AMT happens to be a goal shared by major oil and gas companies based in Archer's home state of Texas.

Dick Armey: As a former economist, House Majority Leader Armey of Texas has long-held and strong beliefs about the tax code, centered around his belief that a flat tax would boost economic productivity. Like Steve Forbes, Armey has proposed a 17% rate for all income (after two years at a 20% rate), with no deductions allowed. And like Steve Forbes, Armey's detractors charge that he holds a blind faith in the "supply-side" theory of economics, which holds that lower taxes will make up for lost revenue through economic growth.

Richard Lugar: Although his campaign for the Republican presidential nomination never got off the ground, this Indiana Senator added more fodder to the tax-reform movement with his proposal to shut down the IRS and replace the income tax with a national sales tax. Lugar said this would reduce bureaucracy and spur economic growth, but opponents charged a sales tax would be "regressive," meaning it would hit the poor harder than the rich.

Richard Gephardt: Gephardt, a former presidential candidate and the House Minority Leader is not a Republican. Which makes his proposal last year for a modified flat tax all the more significant. Although Gephardt's plan is similar to that of some Republicans in that it is based on flat 10% tax rates, his proposal is considered more friendly to lower-income Americans, many of whom would be exempted from taxes entirely. Gephardt would end most deductions, and says his plan would lower the tax rate for 3 of 4 Americans, although the highest-income Americans would see little change.