[Congressional Record Volume 141, Number 94 (Friday, June 9, 1995)]
[Extensions of Remarks]
[Pages E1213-E1214]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                    NATIONAL FLAT TAX SURVEY RESULTS

                                 ______


                         HON. DAVID FUNDERBURK

                           of north carolina

                    in the house of representatives

                         Thursday, June 8, 1995
  Mr. FUNDERBURK. Mr. Speaker, let me commend to you the following 
statement by a fellow North Carolinian, Mr. Louis T. March. Citing the 
results of a survey conducted by the Representative Government 
Education Foundation, Inc. as evidence, Mr. March presents a thoughtful 
argument for implementation of a nation flat tax.

[[Page E1214]]

   Statement of Louis T. March, President, Representative Government 
                       Education Foundation, Inc.

       The Representative Government Education Foundation is a 
     North Carolina based foundation dedicated to educating 
     citizens about our American system of representative 
     government and the vital role of citizen participation 
     therein. An important part of our work is citizen surveys on 
     various issues of importance.
       There is an uneasy feeling on the part of many Americans 
     that we no longer have truly representative government in our 
     country, that government of the people, by the people and for 
     the people has become government of the people, by big 
     government for special interests. Many feel that the wishes 
     of the majority have been lost in the shuffle of big 
     government regulation, special interest favoritism and 
     partisan political wrangling.
       A recent survey conducted by the Foundation shows 
     overwhelming support for a flat rate income tax (hereinafter 
     Flat Tax). Reasons most often cited in favor of a Flat Tax 
     are related as much to problems with the current tax system 
     as they are to the merits of a Flat Tax itself. In our survey 
     follow up the five most cited reasons for desiring a Flat Tax 
     were:
       1. The simplicity of a Flat Tax. The current tax code is 
     much too complex, and defies comprehension on the part of the 
     average taxpayer. With over 9,400 pages of tax law, the vast 
     majority (seventy percent in one study cited) of returns 
     filed by professional preparers are from citizens and 
     households earning less then $50,000. The average American 
     feels a sense of alienation when he cannot easily understand 
     such a basic law of the land. The myriad complexities of the 
     current tax code certainly take their toll in human 
     frustration and personal and business time which could 
     otherwise be utilized for more productive pursuits. The sheer 
     simplicity of a Flat Tax is perhaps the source of its 
     greatest appeal.
       2. A Flat Tax would mean tax relief for the American 
     family. The current tax system imposes a tremendous burden on 
     the American family. A generation ago one wage earner could 
     comfortably support the average family
      of four--no longer. Now two incomes (or more) are required 
     to do so, and the costs of day care, time away from 
     children and the economic stress on family home life are 
     taking their toll. It has often been said that as goes the 
     family, so goes the country. A new family friendly tax 
     system should be devised. Congressman Armey has previously 
     cited that the typical middle income family of four pays 
     approximately 24 percent of its income, up from two 
     percent in 1948, and that the average American family pays 
     more in all taxes than it does for food, clothing and 
     shelter combined. This is wrong, and effectively 
     constitutes a form of economic warfare on the American 
     family. Strengthening the American family is much more 
     important then any Federal government program. And one 
     sure way to help the American family is to simply allow 
     them to keep more of the money they earn. A Flat Tax with 
     generous exemptions for dependents would be fair to the 
     family; the current tax system is not. The American family 
     is in dire need of tax relief, and a Flat Tax is viewed as 
     a means of restoring a measure of fairness to the tax 
     system.
       3. A Flat Tax would be less of an economic burden not only 
     on the individual taxpayer but would realize significant cost 
     savings within the government as well. The current tax system 
     is too costly. Respondents overwhelmingly concurred with the 
     sentiment that marginal tax rates are much too high. Also, 
     the current tax system requires approximately 115,000 
     employees of the Internal Revenue Service alone to administer 
     and enforce it, with an annual budget of $8 billion. 
     Congressman Armey has cited a $232 billion annual cost of 
     compliance with the existing tax code. This has spawned an 
     entire industry of tax code interpreters, tax preparers, 
     accountants and attorneys to keep track of it all. The 
     uniformity of rates, and the overall simplicity of the 
     various Flat Tax proposals as seen as much more efficient 
     system, saving money for taxpayers and for the government as 
     well.
       4. A Flat Tax would be beneficial to economic expansion. 
     The current tax system stymies economic growth. The sentiment 
     ``what we tax we get less of, what we subsidize we get more 
     of'' certainly applies to the current system. Taxing savings, 
     investment and productivity while subsidizing a whole array 
     of proliferating social welfare programs is a major point of 
     contention. There is a widespread feeling that our country's 
     economic growth is held back by the massive outflow of hard 
     earned tax dollars for the support of an inefficient,
      debt ridden and intrusive Federal government--a government 
     perceived as not representing the best interests of the 
     middle American taxpayer.
       5). A Flat Tax would serve to restore public confidence and 
     trust in our government. The current tax system has severely 
     eroded public confidence in and trust of our Federal 
     government and has over time incurred the resentment of a 
     significant percentage of the citizenry. A large number of 
     hard working law abiding Americans have come to live in fear 
     of the Internal Revenue Service. There is a perception that 
     those federal officials entrusted to be servants of the 
     people are acting as their masters. Many Americans are simply 
     fed up and feel that they have no say in this matter. They 
     feel that the current tax system, apart from being too 
     costly, complicated and inefficient, is grossly unfair, 
     favoring moneyed special interests and partisan political 
     concerns over the average American.
       ``No taxation without representation'' was the rallying cry 
     in the American Revolution. Many Americans feel that today we 
     have excessive taxation without representation. This does not 
     bode well for public confidence in our government. Tax relief 
     would do a great deal to restore public confidence in 
     government and in our elected officials. A Flat Tax is viewed 
     by many as a step in the right direction. The American people 
     want Congress to put the concerns of the law abiding, hard 
     working taxpayer first. There is a widespread public 
     sentiment that this has not been the case for a long time.
       On behalf of the Representative Government Education 
     Foundation, I thank you for your consideration of these 
     matters.
     

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