Berthoud Puts Faith in Principle Over Politics

0 Comments | Insight on the News, Sept 27, 1999 | by Catherine Edwards

John Berthoud, the president of the National Taxpayers' Union, seeks to contain the arbitrary power of government through reforming the tax code to favor the interests of the individual.

The National Taxpayers' Union, or NTU, has more than 300, 000 members and is the nation s largest taxpayers group. Founded three decades ago, NTU has worked during the years to keep the government what the NTU would call "fiscally responsible." NTU is engaged in lobbying and grass-roots organization while its sister group, the National Taxpayers' Union Foundation, concentrates on education and research. In 1997 John Berthoud took over as president of the Washington-based organization and has continued NTU's success as well as steering it in new directions.

Concerned that the government spend our money wisely, Berthoud keeps a close eye on every member of Congress and works in partnership with other taxpayer groups to monitor spending on the state level as well.

With a doctorate in political economy, Berthoud directs his staff to look at the numbers behind the politicians ' rhetoric. Through NTU's "Vote Tally" and "Bill Tally" computer programs, the organization has found that politicians' accusations of their colleagues' "fiscal irresponsibility" can be hypocritical: Those who cry the loudest sometimes have legislative agendas that are very costly.

NTU worked closely to defeat the 1994 Clinton health-care plan and began working to press the case for the privatization of Social Security and Medicare long before the media publicized concerns about those issues.

NTU differs from other taxpayer groups in that it strives to be nonpartisan; principle trumps politics. Berthoud hopes further to expand NTU's grass-roots presence through its Website and work with local groups. He also has taken NTU into fighting against the Department of Justice's Antitrust Division.

Insight: Most Americans don't understand or seem to want to understand our tax system. Why do you believe so strongly in tax reform and how do you explain its importance to an apathetic, perplexed and skeptical public?

John Berthoud: Generally, huge numbers of Americans are disengaged from politics altogether -- we have vast numbers of Americans who don't vote. There are large numbers of Americans who are extremely cynical for very, very good reasons -- reasons starting with the president on down.

When we get our message out, we are conscious of a message pyramid -- we have a lot of detail and sophisticated information for people in the media and academics, and we have to be able to spread our message that way. But when we get further down the pyramid, we have to talk in plain English.

For instance, in Indiana and other states where governors have budget surpluses, we did a series of TV ads with the message: "This is your money and the government should return it to you." Very simple, straightforward issues -- this stuff is not complex: A budget surplus is a tax overpayment. It is your money and you should have it back before special interests spend it. Tax reform is a complex system and the IRS is an awful organization. The tax system is way too complex. We are supportive of a flat tax and sales tax.

Insight: Why do you support a flat tax?

JB: We look at tax reform as one of the best ways to reform American politics because there are literally hundreds of lobbyists running around Washington looking for this or that break or exemption -- giving lots of money to politicians in return for special goodies or breaks in the tax code.

We can shrink Washington by reforming the tax code to be just one flat rate with family exemptions. It gets Washington out of picking winners and losers in the tax code and breaks the cycle of dependence between lobbyists and politicians. If you are really serious about reforming American politics, tax reform is key.

Insight: Why do you support a national sales tax?

JB: It is a terrific reform. We are cosponsoring town-hall meetings with Americans for Tax Reform on this topic.

Insight: Would you then advocate abolishing an income tax and all taxes except a national sales tax?

JB: That has to happen. We would have to amend the Constitution to abolish an income tax before we could have a national sales tax. We would not want to give politicians another set of money to draw from!

Insight: What is the possibility of a national sales tax actually passing?

JB: Well, it's not going to happen while Bill Clinton is president. It depends on who occupies the White House in 2001. We and Americans for Fair Taxation are trying to push tax reform to be part of the [current political] dialogue. After a little bit of bottoming out, tax reform is on the rise as an issue.

Insight: Do you anticipate major tax reform if Republicans control the White House and both the House and Senate?

JB: Sure. It would depend on who is the president. Steve Forbes has made tax reform central to his campaign. Gary Bauer has a variant of the flat tax -- he calls it the family-friendly flat tax. I think Republicans would move this forward as a rule more than Democrats, but you know if we could elect Virgil Goode [Democratic congressman from Virginia] for president, I would be very hopeful for tax reform! So there are some good Democrats, too.