I wanted to join you this morning to say a few words about our tax system and the Internal Revenue Service and the role it plays in the lives of American citizens. I'm sure all of you agree with me that our nation's federal income tax laws have grown extraordinarily complex in recent decades. In some ways, this is a natural outgrowth of the increasing complexity of the American economy. The financial affairs of American families are far more complicated today than in previous generations. Ownership of both financial and nonfinancial assets is more widespread and varied.
Families have a greater variety of income sources.
Business transactions are much more complicated. In response, Congress has continually tried to refine the tax laws to match the rapid changes in our economy. The Tax Reform Act of 1986, in particular, added tremendous complexity to the tax code. The Internal Revenue Service is the agency tasked by Congress with the responsibility of enforcing the tax laws and collecting the taxes that are legally owed. This is an important responsibility, because the very functioning of the federal government depends on the American people's willingness to voluntarily pay the taxes they owe.