Once again, Congress is engaged in what is euphemistically known as "tax simplification." Unfortunately, whatever senators and representatives do to the tax code, simplicity is almost never the result.
But there is one revolutionary wrinkle among the many items in this year's legislation - a proposal to let citizens pay their taxes with credit cards. The idea has the backing of President Bush and tax writers in both parties.Congress would have to act to allow credit cards for tax payments because current law stipulates that taxes are to be paid only by check or money order.
This is one idea that does seem like it would make things easier for taxpayers. As long as much of the nation's consumer economy runs on plastic cards, it makes sense to pay the tax bill in the same way.
Of course, using a credit card to pay taxes that are due doesn't really pay them. What it does is take the amount owed to the government and switch it to being owed to a bank credit card account.
The theory must be that it is easier to owe money to the bank - to be paid in endless monthly installments, if necessary. The Internal Revenue Service is less understanding about monthly payments and is inclined to be nastier than a bank if the funds aren't received on time.
At least this method pays the federal government, which is in worse shape than most bankrupt financial institutions, and lets the bank that issued the credit card be the final collector, at fairly high interest, of course.
As Kenneth Gideon, assistant secretary of the treasury for tax policy, says, the credit card plan would give taxpayers "an option for payment that they have in most other debtor-creditor relationships."
Adding to personal credit card debt - which already is staggeringly high for the nation as a whole - may not the wisest fiscal policy. The easy use of credit cards has turned out to be a financial pitfall for many people. It might make paying taxes a little easier, but as always, such convenience carries an extra price tag.
Credit cards normally are based on the premise of "buy now and pay later." Using them to square the tax account would take a different approach - "Pay now and pay later."