Released on = April 24, 2007, 3:12 am

Press Release Author = Walt Lecter/Carlton Hedges & Associates

Industry = Financial

Press Release Summary = After a week in which leading Democrats and the General
Accounting Office looked to the fabled \'tax gap\' to collect more money without
seeming to increase tax rates, Treasury Secretary Henry Paulson told a Senate
hearing that trying to reduce the level of uncollected tax significantly would do
more harm than good

Press Release Body = Mr Paulson said \"There is a big part of the tax gap that we
simply won\'t be able to reach without adding draconian and painful requirements on
all taxpayers,\" he said. \"The cost of compliance for individuals and businesses,
most of whom already pay what they owe, would far outweigh the gains,\" he added.
Addressing the Democrats\' plan to finance tax cut extensions by closing the tax gap,
he warned: \"The tax gap is simply not a pot of gold. Nor should it be viewed as an
easy solution to existing challenges, such as the alternative minimum tax.\"
Speaking from their corporate headquarters in New York Carlton Hedges & Associates
spokes person, Walt Lecter, said "Last week, the Government Accountability Office
said that improved IRS reporting would help the IRS bring in more of the $345
billion in taxes that supposedly go unpaid each year. And Senate Finance Committee
Chairman Max Baucus, at the same hearing, challenged the Treasury and the Internal
Revenue Service to increase voluntary tax compliance to 90% within ten years from
the current 83.7%."
He continued by saying "In order to collect more taxes, the IRS would have to impose
significantly more reporting requirements on taxpayers." He further added "Nina
Olson, the National Taxpayer Advocate recently said No one wants to be obligated to
file a document with the IRS every time he or she takes a cab ride, has someone mow
their lawn, or calls a plumber to fix a broken faucet.\"
After a short pause he went on to say "A better approach would be to simplify the
tax code by reducing rates and broadening the tax base by getting rid of the myriad
of deductions and loopholes that now plague the system. At 17,000 pages, the tax
code is incredibly complex, leading to many compliance problems, and every year
Congress inserts more complicating loopholes and special interest provisions into
it."
He finished by saying \"The American people have a right to expect that their
government will have a goal and a credible plan to reduce this tax gap and it is the
Treasury\'s job to fix it. Yet the administration does not appear to take the job
seriously.\"
Carlton Hedges & Associates provides financial advisory services to wealthy
individuals and families, select endowments, and corporate clients. Our independent,
fee only, conflict free \"open architecture\" consulting service combines a blend of
independence, tax awareness and extensive intellectual resources. Carlton Hedges &
Associates today is one of the best-recognized open architecture firms advising
clients on their investment portfolios and other wealth management issues.
With expertise in the Investment Banking industry, Carlton Hedges & Associates can
help you meet the challenges of wealth investment. Carlton Hedges & Associates is a
professional financial advisory and venture capital firm with expertise in Mergers
and Acquisitions, Investment Banking, Emerging Growth Companies, and Specialized tax
advisory services. Carlton Hedges & Associates provides powerful solutions for
growing your wealth in a complex market.

Carlton Hedges & Associates provides financial advisory services to wealthy
individuals and families, select endowments, and corporate clients. Our independent,
fee only, conflict free \"open architecture\" consulting service combines a blend of
independence, tax awareness and extensive intellectual resources. Carlton Hedges &
Associates today is one of the best-recognized open architecture firms advising
clients on their investment portfolios and other wealth management issues.

With expertise in the Investment Banking industry, Carlton Hedges & Associates can
help you meet the challenges of wealth investment. Carlton Hedges & Associates is a
professional financial advisory and venture capital firm with expertise in Mergers
and Acquisitions, Investment Banking, Emerging Growth Companies, and Specialized tax
advisory services. Carlton Hedges & Associates provides powerful solutions for
growing your wealth in a complex market.


Web Site = http://

Contact Details = Carlton Hedges & Associates
44 Wall Street, 21st Floor,
New York
NY 10005
+1 718 732 2850