Question

President Franklin D. Roosevelt once said, “I am wholly unable to figure out the amount of tax,” and wrote to the Federal Commissioner of Revenue, “may I ask that [the agency] let me know the amount of the balance due.” When a friend of FDR was ordered to pay $420,000 in tax penalties, the President called the Commissioner within earshot of reporters and told him to cut the penalties to $3,000. One listener, journalist David Brinkley, recalled years later: “Nobody seemed to think it was news or very interesting.” Evaluate the President’s comments and actions as if you were a Tax Professional.

1. Explain whether it is legal for a president to ask the commissioner to cut penalties today? Please focus on the legality only and not make your response a political argument.

2. Explain whether it is Ethical for a president to ask the commissioner to cut penalties today? Please focus on the ethics only and not make your response a political argument.

Answer 1

Answer :

1 . Yes . It's Legal actually . Under normal condition , That power resides with Congress. However, Congress has given the President the power to impose tariffs, which are effectively taxes; therefore the President has imposed taxes.So, yes if the IRS, White House, Social Security takes the money out of your pay check. They can since the representatives in your district now or in the past, told the President that they can.

2 . NO , This is Unethical , The President to ask the commisioner to cut the Penality is really Unethical.