Video by Ken Newton

Republican Rep. Sam Graves sees tax-policy opportunity and a fast-reversing pendulum in the recent dealings of Congress.

Of public opinion regarding federal fiscal policy, particularly in the aftermath of Friday’s cap-and-trade energy bill passage, the lawmaker told a St. Joseph crowd Monday night, “This thing is going to swing hard.”

Mr. Graves, a fifth-term representative from Northwest Missouri, foretold a tax rebellion coming from congressional actions such as the business bailouts, the energy package and the coming health care reform.

He called for opponents of the current U.S. Tax Code to continue pushing for alternatives such as the consumption-based Fair Tax, of which he has signed as a co-sponsor.

“Groundswells make things happen,” he insisted. “I think people are getting it. This is an opportunity.”

Billed as a town-hall meeting on tax reform, the gathering seemed more akin to a red-meat political rally or a policy-based tent revival, complete with “amen” addressed to certain points.

About 160 people attended the meeting in a theater at Missouri Western State University.

Mr. Graves, who lives in Tarkio, said citizen backlash would grow if Congress acts on proposals for value-added taxes and increased excise taxes on such products as alcohol and tobacco. While not denying the previous Bush administration built an imposing budget deficit, he said it pales next to the fiscal imbalance seen since President Obama took office.

With the deficit, he said, comes an acquisition of debt. “Somebody has got to pay for it, and it’s going to be everybody,” he said.

During the question-and-answer session, no audience members stood to challenge such viewpoints.

A group of other speakers joined the congressman on stage to talk about the impact of tax policies. Judy Hausman, a St. Joseph CPA, brought to the podium a collection of thick books that make up only a portion of tax law. Individual volumes dealt with depreciation, compensation and sales tax.

The problem, she said, is not just the size of the code, but the consistency of its application. Some provisions change with each passing year, the accountant said, and different federal court circuits issue different rulings on the tax laws.

“It’s not etched in stone — it’s a moving vehicle,” she said. “You can’t plan if you don’t have a consistent tax code.”

Sharon Cornelius of Easton, Mo., an accountant who helps run a family dairy operation, said fixed farm costs and a fluctuating tax situation make for a tough business climate. Floated before Congress, but left out of the House energy bill, was a methane tax that would be charged against cattle emissions.

“I guess it just seems like we have lost all reason in this nation,” she said to broad applause.

Ken Newton can be reached at kenn@npgco.com.