IRS Snoops Dogged

Amidst a Tax Day flurry of bill introductions and rhetoric, both houses of Congress Tuesday overwhelmingly passed measures making it a crime for IRS workers to snoop through returns.

The Senate voted 97-0 to impose a maximum of one year in prison and a $100,000 fine on IRS employees who browse through confidential taxpayer records without authorization. The House approved a similar measure by a 412-0 margin.

But, also in the House, a proposed constitutional amendment that would require a two-thirds vote of Congress for any tax increases again went down to defeat, as it did during the 104th Congress.

At 233-190, the measure fell almost 50 votes short of the two- thirds majority needed for passage.

The amendment won 10 fewer votes than the same measure got exactly one year ago when the House voted it down by a 243-177 margin.

House Democratic leaders attacked it as a "gimmick" that would severely damage the budget process.

And Rules ranking member Joseph Moakley, D-Mass., observed the amendment was being debated even though the GOP was routinely waiving a similar requirement, placed in House rules two years ago, that requires a three-fifths vote for any measure containing a federal income tax rate increase.

In addition, House Ways and Means member Clay Shaw, R-Fla., who supported the amendment last year, said he had changed his mind because the amendment would allow a minority of legislators from small states containing only 7 percent of the nation's population to block tax hikes that could be needed in times of emergency.

"This is not the responsible way for this great body to go," Shaw said, adding that as long as Republicans stay in the House majority, they will not raise taxes so there is no need for the amendment now.

The measure outlawing IRS browsing of taxpayer files sailed through both chambers a week after the GAO reported that the IRS has yet to stamp out the practice.

The GAO found 1,515 IRS workers were investigated for browsing through files in FY94 and FY95, and 23 were fired.

Meanwhile, as negotiations continued to produce a balanced budget plan, several GOP legislators proposed a bill to allow taxpayers to designate up to 10 percent of their taxes for budget-balancing and debt-reduction purposes.

Congress would have up to a year to cut spending by the total amount designated by all taxpayers, or across-the-board spending reductions would go into effect.

Supporters of the measure say incumbents would bear the responsibility on Election Day for any program cuts.

"The idea here is for Congress to make those decisions before the [cuts] have to kick in," Sen. Bob Smith, R-N.H., "Otherwise, Congress will have to pay the price at the polls."

In theory, taxpayers could designate up to $65 billion a year toward paying off the debt, based on last year's tax figures. But $20 billion to $25 billion is more realistic and would provide enough to balance the budget by 2002 and begin reducing the debt, Smith said.

Not all of the Tax Day debate was confined to the Capitol. In Boston, five GOP House members engaged in a modern-day reenactment of the Boston Tea Party by tossing the U.S. tax code into Boston Harbor.

And, opposite the White House, about 40 people gathered for a "Taxpayer Day of Outrage Rally" to call for tax reform and tax cuts. Republican National Chairman Jim Nicholson was there, as was someone dressed like the grim reaper.

Amid the posturing, House Majority Leader Armey disclosed that he had discussed tax issues last week with White House Chief of Staff Bowles, and is encouraged that the two sides can agree on a "reasonable" tax package.