This is the Kator Daily Podcast for Monday, June 10th, 2013.

I'm Caleb Brown.

The extra scrutiny applied to T-party groups undertaken by the IRS would never have happened if there had been

no corporate income tax.

The invasiveness of the tax code as it stands right now is an easy thing to forget, says

Jeff Myron, a senior fellow at the Cato Institute.

The IRS scandal that's been in the news for the past few weeks has been about the

fact that the IRS applied extreme scrutiny to particular applicants for a kind of

non-profit status known as a 501c4.

And if you get that status, then the donations, the contributions are not treated as taxable

income.

The allegation is that the IRS was very extra careful in looking at the applicants who had conservative looking

projects and not the ones that had liberal looking projects and therefore was

trying to prevent people from getting this particular nonprofit status.

My take is that whatever misbehavior from getting this particular nonprofit status.

My take is that whatever misbehavior there was,

there certainly seems to be strong evidence,

it's somewhat inevitable if we have a tax code that tries to tax corporate income.

The whole issue only arose because under current policy,

all of these groups are corporations.

They're not-for-profit corporations under current policy, but they're still corporations.

The question is, when do you get to not pay corporate income tax?

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