Just when you think you have seen everything, Congress delivers something extraordinary. On Sept. 7, the House passed a horse rescue bill providing that “the Secretary [of Agriculture] shall assume responsibility for any equine that is unwanted by an owner.” Heavy lobbying by Mr. Ed is rumored to have been very effective. In a further press of the envelope, the government is also directed to compensate the owner for “the loss in value of the equine.” Perhaps as this new program evolves, they’ll issue regulations to exclude horses that are unwanted due to laziness. Horse evaluators could be added to government offices throughout the country to assess each case and make sure that only deserving horses get government support. Retraining centers could be established to get the unqualified oaters up to snuff. Heaven knows that steps must be taken to prevent undocumented foreign horses from participation. For the record, Iowa representatives Boswell, Latham and King voted NO.

Bleak House

Congressional discussion of income and estate tax issues drones on endlessly, like the scenes painted by Charles Dickens in his novel “Bleak House.” Consider members of Congress “mistily engaged in one of the ten thousand stages of an endless cause, tripping one another up on slippery precedents, groping knee-deep in technicalities, running their goat-hair and horsehair warded heads against walls of words and making a pretence of equity with serious faces.” Though congressmen no longer wear wigs, the balance of Dickens’ 150-year-old description works perfectly. No one with a modicum of sense would argue that our current tax system makes any sense — the level of incomprehensibility and inequity is mind-boggling. The statutes and regulations are stuffed with social engineering, favors to campaign contributors and an endless stream of additions to stem the tax schemes of the all too clever. Every commission ever appointed by any president has submitted prudent and sensible suggestions in its reports. Without exception, those reports have been roundly ignored. We have departed from the seemingly sound principle that government revenues and expenditures should be in balance, because politicians find it more popular to spend than tax. We all notice that campaign themes of cutting taxes are much more common than talk of driving down spending. Why are the wheels of tax reform spinning in an endless sea of mud? (1) Staying in office and having power is viewed as more important than having a workable tax system. (2) A simple and workable tax system diminishes the power and fund-raising ability of politicians because there would be fewer favors, credits and tax deductions that could be doled out. (3) Long-term tax relief is tied to diminishing government spending, and neither party has shown any inclination to tackle that subject.

Don’t Buy This Defense

One of the more remarkable current business stories involves Hewlett-Packard Co.’s investigation of its directors’ personal phone records in order to determine the source of leaks of board deliberations. According to The Wall Street Journal, HP’s board chairman has said she “knew directors’ phone records were being scrutinized, but didn’t realize those records had been obtained improperly.” Let’s consider the chairman’s position. The chairman knew that the phone records were not turned over voluntarily to HP by the directors, nor were they obtained by subpoena. Was there any “proper” alternative for the investigators hired by HP to obtain and scrutinize the directors’ personal phone records? No. When you buy a Rolex from a guy on the street corner for $50, it just doesn’t wash to claim you didn’t know it was stolen. How a crown jewel of a company like HP could be involved in something so stupid is just beyond me.

Mike Nelson is a senior vice president at Iowa Savings Bank in Carroll. He can be contacted via e-mail at mnelson@iowasavingsbank.com.