Watched a little of the Arthur
Andersen auditing firm testimony on the Enron fiasco the other day.
Under intense and confrontational
questioning, Andersen CEO Joseph Berardino yielded pretty much zilch in
the way of enlightenment as to how Enron's misinformation slipped through
Andersen's radar.
And what could he say? How
about this ... "Mr. Chairman, big corporations hire auditors to go
over their books because the government says they have to, and since the
big corporation is the one paying the auditor, the auditor generally sees
what the big corporation wants seen."
I've covered dozens of city
councils and county commissions over the last 30 years, and I've sat through
hundreds of meetings in which the auditor reports on the required annual
audit, and not once have I heard that auditor say, "Your accounting
is atrocious. You should fire your incompetent finance manager and get
someone who can work a calculator."
No, I'm not saying auditors
are crooked. Think a little deeper.
What you have here is just
one example of thousands in which a well-meaning government tries to prevent
bad things from happening to people by controlling what used to be known
as the "free" enterprise system.
The world of science fiction
is replete with variations on a basic plot in which robots or super computers
are programmed with the overriding prime directive to do good for humankind
and prevent harm to humankind.
Inevitably, the well-meaning
programming goes awry as the anxious-to-please robots and super computers
frantically build barrier after barrier to any human activity that may
result in harm to humans, until humans are utterly enslaved by the doting
machines.
There was a great one on the
original "Star Trek" in which a computer that the people on
this planet had come to think of as "god" monitored their every
waking action and conversation, bringing great pain to anyone who said
or did something that it thought might cause harm in some way. Spock,
of course, had to mind-meld with the thing so he could use that Vulcan
logic to override its programming.
Sorry if you're not a fan,
but it's a perfect analogy for how our government has increasingly tightened
the corset around our lives as representatives and bureaucrats try to
fashion the perfectly safe society.
Social Security, welfare, paying
farmers not to plant crops, gun control efforts, hate crimes legislation,
GRTA ... I could go on and on, especially with examples of how an employer
and an employee may come to an agreement in which both are perfectly happy,
but the government steps in and says, "No, you can't do that. Our
way or the highway."
They're going to keep squeezing
us to protect our lives until there's no life left to protect.
I'm not saying reasonable rules
for corporations to operate under to help prevent predatory practices
and level the playing field are all bad. I'm just saying they're out of
control.
As to how you get them back
under control, in many instances that's something you'll have to ask someone
smarter than me. I can't figure out how you unravel the giant regulatory
ball of twine down to something that's reasonable, and then prevent those
do-gooders we keep sending to Congress from looking at the new, streamlined
regulations and coming up with new bright ideas for adding new layers
of twine because a plane crashed somewhere or somebody got defrauded.
But there's one huge strand
of twine I could yank out of there like that! (picture me snapping my
fingers) if you would just elect me king for a day.
I would do away with that ridiculous
labyrinth known as the income tax code and replace it with a simple flat
tax. Everyone would pay exactly the same percentage of income. If you
managed to gain a little success, your taxes would increase, but not exponentially
- the percentage would remain the same.
But, you're thinking, corporate
taxes would still be complicated, because you'd still have to depreciate
assets and do all kinds of complicated calculations to figure out what
your actual profit was, right?
Wrong. We will no longer play
the three-card monte game of pretending there is such a thing as corporate
taxes. Corporate taxes are paid by you and me when we buy goods and services.
As king, I hereby declare that from now on when your government taxes
you, you will see it in black and white on your own personal tax bill,
and if you're mad about it you'll know how to correct it next election.
Would there be more Enrons
if I were king? Probably. Sometimes you win and sometimes you lose. That's
life.
If that scares you, try to
remember this clichéd (but apparently not clichéd enough)
advice: Don't put all your eggs in one basket.






Easy button Return it to long suffering taxpayers including those who have paid huge tabs to educate other people's kids…