LETTERS: TAX CODE SERVES A USEFUL PURPOSE

To the editor:

As an H&R Block franchise tax office owner, I am responding to George Will's March 14 column. It is true that if you drive from Ste. Genevieve to Cape Girardeau you may see four H&R Block offices and that you will not see a Gap store. The H&R Block offices are preparing tax returns, electronically filing tax returns, discussing tax-planning options and communicating information to a large number of inquiries. Mr. Will stated that this is a time of "seasonal foreboding," as if you have to pitch to Mark McGwire. Generally, our inquiries are to the point: How much should I have withheld? What are the tax consequences of actions being considered in planning for 1999?

The 1999 IRS Tax Guide-Publication 17 has about the same amount of tax-return explanation as did last year's guide. More importantly, the changes for 1998 include the $400 child credit, the education credits including the new Hope credit of up to $1,500, the student loan interest deduction and the new Roth and education IRAs.

The flat taxers in general cite the length of the tax code as a reason to change our progressive tax system with its targeted incentives. The tax code may need some tweaking here and there, but in large part it has provided the necessary revenue for our national needs without being economically disruptive. I believe the majority of taxpayers see the code as our national rules for taxpaying and financial planning. The rules have not changed. You just have more options in tax deferral and the ability to invest in instruments providing income that will never be taxed. The new rules for capital gains and the sale of housing have provided needed tax relief and investment incentives.

As to the rest of the column, I don't know who Amity Schals is except that she works for The Wall Street Journal. She probably shops at the Gap, along with George, Cookie and Sam. While we do not have a Gap, we do have two Wal-Marts, a mall, Buchheit's, a couple of squares, downtowns, plazas, strip centers and a Grandpa's. Who needs a Gap? Who needs a new tax code?

GERALD L. STEVENS

H&R Block

Perryville.