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MIKE TAKES A HIKE

November 18, 2005

Mike Ralston is stepping down as Director of the Iowa Department of Revenue to become President of the Iowa Association of Business and Industry. He had been head of the Department since the retirement of longtime Director Jerry Bair in 2003.

While I didn't always agree with Mr. Ralston, I always believed he was trying hard to do sensible things in implementing Iowa's nonsensical tax laws. While Mr. Ralston would be too nice to ever say so, I suspect that trying to change the direction of the Department of Revenue bureaucracy is about as rewarding as quick swim in the La Brea Tar Pits. I wouldn't be surprised if Paul Streckfus's portrait of the IRS applies as well to the Iowa Department of Revenue:

..., as a general rule, the IRS's best employees tend to leave after a few years for the private sector out of frustration. Too often this exodus leaves behind the less capable. This problem is compounded by the combination of a strong union, the National Treasury Employees Union, along with civil service protections. This means IRS managers can't fire or even meaningfully discipline employees. The result is that managers don't really manage. As one IRS manager put it to me, he "suggests" that his employees perform tasks. If they decline, there is little or nothing he can do.

Welcome back to the private sector, Mike, and good luck.

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