JIM TALENT CITES NEED FOR IRS REFORM

U.S. Rep. Jim Talent will seek his fourth term next year, but he isn't discarding the idea of a run for governor in 2000.

"It's too early at this point to think about governor," said the Chesterfield Republican. "But I will certainly leave that option open."

Talent, a former Missouri House member, was guest speaker at the Cape Girardeau Chamber of Commerce's First Friday Coffee Friday.

Talent's name came up for governor in various Republican circles as early as January. Democratic Gov. Mel Carnahan is in his second and final term.

Talent, chairman of the House Small Business Committee, did not mention any possibilities of a governor's race during his talk to the large First-Friday coffee crowd, but said earlier that he had been approached by a number of people.

"Right now I want to do as good a job as I can as a representative," said Talent, who concentrated on a couple of other topics during his talk.

He told the group he expects to see two high-profile topics in Congress this year: Internal Revenue Service reform and the Tax Code.

"A small tax bill passed Congress last session," he said. "But I think you'll see some more tax discussions this year."

Included in the discussions will be ideas of a vastly simplified tax form and the possibility of a flat or consumption tax.

Talent, who leans toward a flat tax with some compromises, said some sort of new tax code could come about by 2000.

"We need a deadline," said Talent. "If we could establish a deadline of the year 2000, I think we can reach that deadline."

The National Federation of Independent Business (NFIB), whose membership totals more than 600,000 businesses, agrees with Talent's deadline theory. The NFIB is conducting a petition drive to abolish the current U.S. Tax Code by 2001. The kickoff of the NFIB petition started in Missouri, with a simple message: "Repeal the tax code and replace it with a simpler, fairer system."

One of Talent's "compromises" would be the home mortgage deduction.

"Under a flat tax, American will lose the majority of deductions," said Talent. "But some deductions are necessary, and I feel that the mortgage deduction is one of those necessary ones."

One of the big items this year will be discussions about the IRS, said Talent, who is critical of the agency.

"The IRS has become too powerful," Talent said. "Only the IRS can presume that people are guilty until proven innocent."

"And, if you attempt to contact the IRS for help, you have only a 20 percent chance of getting through," said Talent. "It's time for a change in the IRS culture," he said.

Talent said he had received many complaints concerning the IRS from small businesses, which feel the IRS serves as judge, jury and executioner.

"People are afraid of the IRS," he said. ""We want the IRS to enforce the laws, but not for people to be afraid."

One of the problems, said Talent, is that the $11 billion IRS isn't being run. It should be placed under an independent management group, he said.

With all the complaints, and a recent reform movement following some dramatic revelation by businesses, the IRS is suddenly aware that something may happen to change its culture, said Talent.

Talent and U.S. Sen. Christopher Bond, chairman of the Senate Small Business Committee, were named recently among Guardians of Small Business by the NFIB for their voting records. Also on the list from Missouri were U.S. Sen. John Ashcroft and U.S. Reps. Jo Ann Emerson, Mel Hancock and Pat Danner.