[Congressional Record Volume 141, Number 117 (Wednesday, July 19, 1995)]
[Senate]
[Pages S10320-S10321]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. SHELBY (for himself, Mr. Craig, and Mr. Helms):
  S. 1050. A bill to promote freedom, fairness; and economic 
opportunity for families by reducing the power and reach of the Federal 
establishment; to the Committee on Finance.


                the freedom and fairness restoration act

 Mr. SHELBY. Mr. President, I am proud to announce the 
introduction of the Freedom and Fairness Restoration Act in the Senate 
of the United States of America. Two years ago, the flat tax was not 
even considered as an alternative in the tax reform debate. One 

[[Page S 10321]]
year ago, thanks to the able House majority leader, the flat tax was 
introduced in the House of Representatives and took the country by 
storm. Today, I am here to tell the American people the flat tax has 
found a home in the Senate and the flat tax is not only a legitimate 
proposal for tax reform, it is the leading candidate.
  When considering any proposal for tax reform, one has to ask the 
question, ``Should the Federal Government coerce free individuals by 
means of tax policy?'' I believe the answer is a clear and resounding 
``No.'' In other words, tax policy should neither encourage nor 
discourage the personal decisions of free individuals in America. If 
one accepts this premise, one has to conclude the best alternative for 
tax reform is the flat tax. No other tax proposal, not the sales tax, 
and especially not the Gephardt un-flat tax, has the attribute of 
neutrality.
  The Armey-Shelby flat tax taxes every dollar in the economy once and 
only once--all at the same rate. As a result, the Armey-Shelby flat tax 
does not coerce free individuals into making decisions to take 
advantage of a special interest tax break or to avoid some tax penalty. 
The basic premise of the Freedom and Fairness Restoration Act is that 
free individuals know best how to spend their hard-earned dollars.
  The current Tax Code, while serving its purpose of revenue 
collection, has many problems. It contains high marginal rates as well 
as a hodgepodge of special interest deductions. In addition, the 
complexity of Federal tax laws cost taxpayers approximately 5.4 billion 
hours, or $150 billion, just to comply with the current Internal 
Revenue Code.
  As a result, the time has come to abolish the old, inefficient tax 
system and adopt a new, strict flat tax--20 percent for the first 2 
years, and 17 percent thereafter. Generous personal allowances--$31,400 
for a family of four--will cut taxes for families and provide a level 
of progressivity many find essential for tax reform. The flat tax will 
eliminate the double taxation of savings and promote jobs and higher 
wages. These attributes of the Armey-Shelby flat tax are the keys that 
unlock the door to economic prosperity and assures freedom and fairness 
for all.
  By Mr. HATFIELD (for himself, Mr. Stevens, Mr. Cochran, Mr. Pell, Mr. 
Moynihan and Mr. Reid):
  S. 1051. A bill to authorize appropriations for the American Folklife 
Center for fiscal years 1996, 1997, 1998, and 1999; to the Committee on 
Rules and Administration.

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