Flat taxes, lower tax rates and inflation were the topics of choice for Steve Forbes last night, who spoke in a sarcastic tone to a crowd of economics enthusiasts at Eisenhower Auditorium as the last speaker in the Distinguished Speaker Series.

Forbes said the real challenge with the economy is the daily clash with taxes.

"You don't realize how much your pockets are being picked," Forbes said. "You wake up and turn on the light, that's an electrical tax. You brush your teeth and there is a water tax. Federal income taxes are everywhere."

Forbes said he is a proponent for flat taxes, which he said would expand the economy, cut the government's income and increase families' incomes.

"Flat taxes would make me very happy, but baby steps do not win a marathon," Forbes said. "We are overtaxed, much more than you realize."

However, Forbes said the United States is in the middle of a productivity boom.

"Despite the large amount of uncertainty, we are on the cusp of one of the most innovative times in history," Forbes said. "We literally have the world at our fingertips."

He discussed productivity, rising income, rising investment and tax cuts as major contributors to fueling the economy.

"Lower tax rates will change the dynamic of the economy," Forbes said. "When our taxes are lowered, the economy will blossom."

Forbes mentioned Sam Walton, the founder of Wal-Mart, and his decision to offer lower prices for consumer goods in rural and urban cities across America.

"He created a company that could beat thousands of other companies," Forbes said. "Wal-Mart was the first organization that wasn't a monopoly, hired more than one million employers and still turns a profit."

His theory about the current mild inflation leads to Alan Greenspan, who Forbes said is printing too much money.

"Look at gold as a parameter for inflation," Forbes said. "If gold goes below $300 per ounce, that's bad. If the price of gold goes above $400 per ounce, we're experiencing inflation."

Forbes said the federal income tax code is an abomination at 9 million words long, and no one even knows what is in the document.

"You don't have to go to the Amazon to see exotic things, just look at the federal income tax code!" Forbes said. "We can't reform it, we just need to kill it and put in a code that people can actually understand."

Forbes concluded by discussing the war on terrorism, which he said is a continuum of the war we've been fighting for over 80 years.

"If we do not lead the war, it will not be fought and won," Forbes said. "The American nation will resume their place as an inspiration and leader to people and nations around the world."

Russ Cochran (junior-business economics) said it was an excellent experience to hear someone as brilliant as Steve Forbes discuss current economic topics.

"I am a member of the Penn State Investment Association and being able to listen to people who have defined the field, like Steve Forbes has, is an incredible opportunity," he said.