[Congressional Record Volume 143, Number 22 (Wednesday, February 26, 1997)]
[Extensions of Remarks]
[Page E320]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             GAO STUDY BILL

                                 ______
                                 

                      HON. JAMES A. TRAFICANT, JR.

                                of ohio

                    in the house of representatives

                      Wednesday, February 26, 1997

  Mr. TRAFICANT. Mr. Speaker, proponents of the flat tax, and there are 
many, argue that a flat tax would be more fair to Americans than a 
progressive income tax. Meanwhile, the proponents of the consumption 
tax tout the elimination of the Internal Revenue Service as a chief 
benefit. All Americans agree that a simplified tax code would eliminate 
loopholes and complex deductions only a tax attorney and CPA 
understand.
  Since coming to Congress, I have supported the idea of a simplified 
tax system. I believe that more Americans would pay their taxes if they 
understood what they owed and they didn't feel they were missing out on 
some obscure break they overlooked. If you honestly felt that you were 
paying your fair share, you would have more confidence in the system. 
Imagine the savings to Americans in tax preparation, not to mention 
money spent on antacid.
  I think the solution is a combination of both. A flat income tax for 
easy filing coupled with a lower sales tax to get at the money 
generated by our great economic engine. This plan would incentivize 
savings, reduce interests rates, drive new business, and generate more 
economic activity while still maintaining our present level of 
revenues.
  Today I introduced a bill that calls for the Comptroller of the 
General Accounting Office to study the effects of my plan, including 
possible deductions for interest on a home mortgage, college tuition, 
and a per child deduction. My bill won't change the IRS code, only 
require a study of the effects of a change. I am so confident in this 
plan that I think after the GAO study is complete, the advantages will 
become apparent.
  I think the dire circumstances America finds itself in is a result of 
our poor tax and trade policies. Our tax code rewards dependency and 
penalizes achievement. This new tax plan would be the first step toward 
ending the economic crisis we face today.
  Mr. Speaker, I urge all Members to cosponsor my bill.

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