Have you looked at the competing tax proposals from McCain and Obama? McCain wants to make Bush's tax cuts permanent, while Obama wants to cut taxes on everybody except those who earn more than approximately $250,000.

Clark thinks both candidates are just trying to be elected president. Neither is willing to tell us what we really need to know: The federal budget deficit is approaching $500 billion by next year, which is more like $1 trillion when you factor in Social Security and Medicare.

The real question should not be whether McCain or Obama is better qualified to rearrange the deck chairs on the Titanic. The question should be what are you willing to give up to have lower taxes? That's the topic of Clark's poll this week. Vote and let us know!

Clark loves found money. When he and his associate producer Joel went to lunch today, they used a BOGO coupon for Whataburger that someone at KRLD gave them.

Right now, far too many Americans have left found money on the table when it comes to the federal government's economic stimulus payment. USA Today reports that 5 million veterans and retirees of all stripes have failed to do the simple paperwork required to get the $300. This is low-hanging fruit that they should pick.

Be sure to help out your elderly relatives if they haven't filed yet to get the payment. Even if they don't normally file taxes, this year they've got to do so. They just need to show that they owe no money, and then they'll get in the system and trigger a disbursement. It's not too late.

Don't panic if you're among those still waiting for your check in the mail. The IRS says to hold tight for a little bit longer.

The city of Vallejo, Calif., has gone bust. This San Francisco suburb, with a population of about 125K people, fell into a budget squeeze as tax revenues decreased dramatically because of the housing slump. Like many local governments, Vallejo didn't dial back on spending when the revenues decreased.

It's critical for citizens to let local politicians know that you can live with less government -- rather than having to pay higher taxes to maintain a familiar status quo. In fact, government has historically been "smaller" during much of our nation's history. It's only been during the last third of our history that spending spiraled out of control.

In related news, Clark recently read a Wall Street Journal article that detailed how banks are breaking the law by not paying backlogged HOA fees once they assume ownership of a foreclosed townhouse or condo. This is inexcusable. Congress is making noises about reining in this practice, but there's been no movement. Local government needs to put its foot down and pass punitive measures if banks don't do the right thing.

Clark recalls when one of his show staffers lived near a "ghost house." This property remained unsold and woefully unkempt for 2 years after foreclosure. Needless to say, it really depressed property values in the neighborhood. Again, local governments have to be vigilant in making sure banks properly maintain homes they've brought to foreclosure.

Just under 40% of people wait until the last possible minute to file their taxes. A smaller percent of people file for an extension. Clark often feels like there are 2 taxes: There's the tax you pay and then there's the success tax. If you do well financially, dealing with taxes becomes a pain. Clark's had the good fortune to be successful and his tax return was 58 pages long this year. That's just silly. GE, meanwhile, had a tax return that was 24K pages long!

John McCain has a proposal to simplify taxes that Clark likes. Under the plan, a new taxpayer coming into the system would be under a brand-new tax code. Current taxpayers could choose between the old and the new tax codes. McCain hasn't fully fleshed out his plan, but it seems that once a current taxpayer chooses to go for the new code, they'd be locked in. There's no going back.

The San Francisco Chronicle recently reported on what things were like in 1913 when the income tax was instituted and what they're like today. In 1913, the form came with 1 page of instructions; today it has 92 pages. In the old days, there was a flat tax of 7%; today we have multiple brackets.

Meanwhile, the IRS has tons more employees than other government agencies. It's a broken system. Need further proof? Look at the private collection agencies that are paid to collect taxes. They're a money-losing proposition. The funds they bring in are less than what the government pays them to collect.

Like any good tightwad, Clark is concerned about how much of our money is being spent by state and local governments. The reality is there are many things that government does that people aren't willing to give up. That's the whole challenge in the raising taxes vs. cutting spending debate.

Virginia's conservative Loudoun County saw an enormous rise in tax revenues over the years and the government got used to spending all the money. Now tax revenues are declining. So is Loudoun tightening the reins to fit a decreasing budget? No, they're imposing a 20% tax increase on residents. This is not a pretty picture, but it could be repeated across the country if citizens don't demand belt-tightening on the state and local levels.

Some government functions -- such as police, fire and rescue -- are better not privatized. So there are tough choices to be made. You may want your local government to trim the budget, but where are you willing to see the pruning done? Meanwhile, Clark was horrified to learn that his community is considering a more than 50% increase in taxes. Likewise, Christa was recently having a refinance appraisal and the appraiser thought her high taxes were a mistake!

RIP-OFF ALERT: Clark is steaming because the IRS has spent $40 million to mail out propaganda to the American people about the economic stimulus payments (aka "the rebates"). But who among us didn't know about the rebates? What's the point in spending an extra $40 million on top of the $150 billion the government had to borrow to fund the rebates in the first place? This is yet another indication that the Politician Protection Act of 2008 (Clark's name for the stimulus package) is malarkey. The politicians want you to take the money; blow it to artificially prop up the economy; and then vote them back into office. But here's a better idea: Take it and pay down your debt. That's how you can make a real lasting impact on your financial house. The government is mortgaging your future, and you have to counteract that.

Clark has been fielding a ton of calls about the economic stimulus payments. People have been really confused by the media coverage of these rebates that will be coming in late spring and early summer. That's why Clark has compiled his new plain English guide to the economic stimulus payments. When you visit this page, you'll see Clark opens with a blog-style posting in which he talks about his disapproval of the stimulus package. From a standpoint of fundamental economics, this package is sound and fury signifying nothing -- except it will feel like something when you get that check or direct deposit. Since he does disapprove, he wants to be sure you turn a negative into a positive by using your refund to pay down your debt. It's like following the first rule of medicine: Do no harm. Otherwise, this package may be an economic prescription that can potentially harm us as a country.

Clark recently spoke about the IRS free filing option and confused a lot of people in the process. He hopes to clear things up right now. First off, know that Clark prefers that you e-file because you're less prone to make errors thanks to software improvements. E-filing is free for those who make less than $54K/year, which is the majority of people. Note that the $54K cutoff pertains to adjusted gross income, so you may still qualify if you make in the $60K range.

IRS.gov offers a list of about 20 companies that will prepare your taxes and e-file them for free. You can even try your return with more than one company -- just be sure you don't file more than once! If you are not Internet savvy, free income tax prep is also offered offline by the AARP and the IRS. The latter's volunteer income tax assistance program can be reached at 1-800-906-9887.

Early in the primary season, a lot of GOP candidates were talking about changes to the tax code that would simplify things a lot. Clark hopes the candidate who makes it into office -- be it a Republican or a Democrat -- will put this idea to work. Remember the IRS is just the messenger; it's Congress that is the real culprit for our complex and confusing tax system.

Clark wants to update you on your friends at the IRS. There's some good news that pertains to the earned income tax credit which allows people who don't owe any federal tax to get a credit when they file. 20 million people are eligible for the EITC, but only around 5 million take advantage of it. You usually have to have kids to qualify for EITC, and your income can be up to about $40K. But if you don't have kids and you made an exceedingly low income, you may still be eligible. The EITC will give you up to $4,700 back in your pocket. You may also want to check IRS.gov to see if you meet the income requirements for free filing.

On the flip side, there's bad news for rich folks. The wealthy are being audited at near-record levels. Those who earn $100K are more likely to be audited than those who don't, while those who earn $200K are twice as likely to be audited compared to those who earn $100K. If you make $1 million or more, you have about a 10 percent chance of being audited. While that may not sound like a lot, the cost to comply with a field audit is in the tens of thousands -- even if you're completely innocent.

Talk radio hosts were ecstatic with the results in New Hampshire yesterday. The thought of a Hillary-less race nearly drove them to tears. They need a foil and she's the best woman for the job. Reading the exit polls, Clark finds it interesting that terrorism has dropped on people's lists of concerns. Terrorism remains a top issue for him. The economy is, of course, one of the big issues. According to a recent poll, GOP voters (and the Dems, too) are unhappy with Bush's economic stewardship. This harkens back to the idea that people are happy in their own lives, but they're unhappy with where the country is. So here's Clark's prediction: People will vote with their own specific pocketbooks in mind if unemployment continues climbing; the price of oil stays high; and the dollar remains in the toilet.

Gov. Schwarzenegger currently is involved in a battle with the California legislature over the state's budget deficit. You'll see this scenario repeated in state after state because of the economic slowdown and the housing slump. States are required to balance their books each year, but that's not so with the feds. Longtime listeners know that Clark admires Colorado's TABOR (Taxpayers' Bill of Rights). The idea behind TABOR is that state spending must be capped at the rate of population growth plus the rate of inflation. In Clark's estimation, more states should look at adopting TABOR to pay for everything that politicians promise.

Have you ever taken a refund loan on your tax return? This option is heavily pushed by tax-preparation chains like H&R Block and Jackson Hewitt. About 12 million Americans go for this option every year. There are a couple of reasons why this is not a Clark Smart decision. First, you have to understand that the government is not giving you something when you get a refund on your taxes. You're the one who gave the government an interest-free loan all through 2007 by having too much withheld out of your paycheck. Second, the big tax-preparation chains will charge 100s of percent interest on the refund loans. So you're paying to get your own money back that you shouldn't have given to the government in the first place!

Many people use their tax refunds as a way to force themselves into saving money. But Clark recommends instead that you reduce your tax withholding to be even-steven. Then contact your credit union (or ING Direct, Emigrant, etc.) to set up automatic deductions for that exact windfall every pay period. The end result is that you'll build your savings and earn interest all year. Meanwhile, the IRS is seriously considering banning refund loans. But their motive is not to protect taxpayers. Rather they discovered that tax-preparation chains have been falsifying taxes to generate larger returns and more profit for themselves when they make refund loans. After the IRS announced its intentions, Jackson Hewitt lost around 25 percent of their stock value in a day. As if you needed something else to convince you that refund loans are a bad idea!

Why does New Hampshire have a higher rate of economic growth than neighboring states like Massachusetts or Vermont? Clark thinks the answer is obvious -- taxation. The Boston Globe's Robert Gavin recently penned an article lamenting the fact that Mass. has no job growth and the second worst economy in the United States. But the story has no mention of the fact that heavy taxation can cause economic decline. After all, they don't call the state "Taxachusetts" for nothing! Michigan is also suffering because they're always raising taxes too. When you do that, people vote with their feet and leave for greener pastures. Take the case of Derek Jeter. The Yankees baseball player is being sued by New York City and State because he had the good sense to move from the Empire State to Florida. In doing so, he fled a place where he was faced an 11.2 percent tax to a place where the tax is zero!

Clark has a recipe for Mass., Mich., NY and any other tax-happy states: Control and cut government spending where you can. Don't play Santa Claus to everybody. NY has a long tradition of the government helping everybody out whether the city is run by Republicans or Democrats. Look at Texas. The Lone Star State has passed NY to be the second most populous state in the nation. It's also has one of the lowest taxes in the nation. Most politicians lack the fortitude to say that in order to cut taxes, we should be cutting government spending. But the government can no longer be our sugar-daddy. You've got to cut the sugar!

Fred Thompson is one presidential hopeful who got off to a great start and then promptly disappointed a lot of people. But there have been two instances when Thompson really impressed Clark. The first was when he laid out his proposal for overhauling Social Security. Now Thompson's flat income tax plan has interested Clark. The idea itself is not new; we briefly had a flat tax back in 1986. Back then most Americans paid a flat fee of 15 percent, while the ultra-rich paid 28 percent. It was that easy and streamlined. Thompson is proposing 10 and 25 percent, respectively. This proposed flat tax would be voluntary. If you still want to subject yourself to the arcane current tax system, you'd be welcome to do so. Or you could switch and fill out your streamlined tax return in about a minute! There wouldn't be any changes year to year in how you're taxed. Many of the world's most robust economies have simple, clean and clear tax systems. Having transparency builds creditability and confidence. As an added bonus, people don't cheat as much on their taxes when there's a flat tax system. Clark wants to stress that this is not a political show, and this should not be construed as an endorsement of Thompson. Clark just likes that Thompson had the guts to propose a flat income tax.

As listeners know, Clark steers away from political talk on his show. But columnist Jonah Goldberg recently wrote an op-ed piece about government spending that really interested Clark. Goldberg analyzed how spending grew in the 25 years following Reagan's 1981 inauguration. During that time the U.S. population grew around 30 percent, yet government spending rose almost 90 percent after adjustments for inflation. The reason behind the surge in government spending growth is pretty simple really. Human nature dictates that there's a natural tendency to want a "free lunch" from the government. That's an inclination that goes beyond whether you live in a red or a blue state. We as a nation need to decide what we're about; so far we've been about wanting it all. We have become some of the highest taxers in the world, Clark says, and that's irrespective of party affiliation. So there's a question we must ask ourselves: Do we want to grow our economy and have more in the long run, or do we want to curtail growth in order to have more money to redistribute to people? Colorado has been particularly effective in controlling the growth of government spending with their Taxpayer's Bill of Rights, which limits spending to the growth in population plus inflation. There's a difficult balance to be struck here. Clark thinks we may be tying one hand behind our backs with our spending, and we're growing weaker and weaker compared to other capitalist economies.

Last fall, Clark was outraged by the story that the IRS was using private tax collectors to collect taxes. It’s an invasion of privacy and personal information, not the mention the fact that there is a lot of corruption in the program. One of the three collection agencies that the IRS hired has a staffer who was convicted of bribery on a prior case. In addition, Clark just learned that these programs cost more than they collect. This is dirty politics and Clark is completely against the program. So is the national taxpayer advocate, who said this program should be repealed. This is our private, personal financial information, so the IRS – and only the IRS - should be responsible for collecting taxes. This program will probably die, but in the meantime don’t entertain questions from collectors if you get a phone call.

About six month ago, Clark told you about a lame idea from the IRS to turn over collection of unpaid taxes to private collectors. You might think this was done as a way of being more efficient at collecting taxes, but it was actually a way to pay off to political organizations. The sad part is that it’s going to cost the IRS $61 million in fees and commissions and the agency is only going to earn $56 million. In other words, this move is going to cost taxpayers money. The Government Accountability Office found that the program doesn’t have good protection against out-of-control collectors. In fact, the program is so poorly planned that you won’t be able to tell whether you’re getting a call from a legitimate collector or a crook. The IRS says it will send out a letter, telling people their debt has been turned over to a collection agency. But how hard is it to create an official-looking letter. Yes, people should pay taxes that they owe. But, what we really need to is fix the current tax system.

Today is a big day in the world of taxes. The voters of Colorado have decided to reform TABOR – The Taxpayer Bill of Rights. Clark has been a big fan of this act for about the past 10 years because it dealt with restrictions on government, especially state government. When it was passed, the law imposed strict limits on government spending and growth based on inflation. It shrunk the share of government in the state of Colorado, which was a great thing. But the restrictions became too tight and the citizens of Colorado decided to increase taxes on themselves by about $700 million a year. So, there will still be strict rules, but it won’t be as restrictive. Clark thinks the idea was great in practice. He agrees that we need to limit the strength of government and its ability to grow, and he thinks more states need some kind of enforceable limits.

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In other news, President Bush’s tax panel has submitted its proposal for changes to the country’s tax code. It would change the way we’re taxed in that it’s a simpler code with just a few tax brackets. Most people would pay 15 percent on income. Some would pay as much as 30 or 33 percent. The plan also reduces the mortgage interest deduction. But people will be taxed less, so it kind of evens out. Several groups are going to get hit hard, though. Single folks, those over 65 years old and those living in areas with inflated housing prices are among them. Clark would be happier if we went to a completely different system all together, so we’ll keep you posted on what happens.

What we pay in taxes frustrates Clark quite a bit, but not as much as how the current tax system works. Last year, he and his wife spent 11 hours organizing their paperwork so their CPA could sort through it. Then, they had to pay the CPA to do their taxes and had to go over the paperwork again when the forms can back for signing. Today’s tax code is a joke. Special preference items for companies and special interests have confused the code into a mockery of its original purpose. It’s so confusing that most people either make mistakes or cheat on their taxes. A number of proposals have been floating around to fix the current system. These include the flat tax, the fair tax and a national sales tax. Well, the powers that be on Capitol Hill have now decided that there will be no chance of creating a national sales tax or it’s cousin, the VAT (value added tax). Instead, the President’s Tax Commission is looking at reducing the mortgage tax deduction for people who buy big houses. It’s a solid idea because the country has been providing a massive subsidy for these people instead of encouraging lower income families to buy homes. Secondly, the commission is planning to change the way people buy health coverage in the country. These are all good ideas, but we still need to do something about the tax code. Clark doesn’t care if it’s a flat tax, a VAT, or a sales tax as long as we simplify the code and create a more logical and fair way to do our taxes. Maybe the answer is the "X" tax!

Clark talked last year about an experiment going on in the state of Oregon, whereby people would be taxed based on the number of miles they drive. Right now, when people fill up their tanks at a gas station, they pay a certain amount of tax for each gallon. The amount depends on the state. But what happens when people buy a fuel efficient automobile? They’re going to pay fewer taxes and the amount of money the government gets is reduced. In Oregon, state officials are testing out a system that will tax people based on the number of miles they drive. Basically, it’s a road tax. We asked asked in a Clark’s weekly poll how you felt about the initiative. About 75 percent said they were not in favor of it. The most popular reasons why were that people didn’t want government involvement and they didn’t like the idea of being tracked. GPS systems would be installed in cars to track the number of miles people drive. But, apparently, this taxation idea is taking shape and the Feds are now setting up a commission to look into it further, according to the San Francisco Chronicle. Theoretically, it makes sense to tax people on the miles they drive. But for people like Clark, who drive fuel efficient cars, the tax burden would be doubled. In addition, the current system encourages people to drive more fuel efficient cars, which reduces our dependence on foreign oil sources. But Congress is going to have its say in this.

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Speaking of fuel costs, how much fuel do you think you waste sitting at traffic lights? It’s in the billions of dollars at this point. The sad part is that it’s preventable. Smart lights, which can tell when cars are approaching or in the area, would help that problem immeasurably. There are simple ways to address this issue, and we need to look into that.