[Congressional Record Volume 143, Number 44 (Tuesday, April 15, 1997)]
[Extensions of Remarks]
[Page E657]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         REDESIGNING THE SYSTEM

                                 ______
                                 

                            HON. BILL ARCHER

                                of texas

                    in the house of representatives

                        Tuesday, April 15, 1997

  Mr. ARCHER. Mr. Speaker, on behalf of myself and my good friend, the 
distinguished Majority Leader Dick Armey of Texas, I would like to 
submit for the Record an OP-ED on tax reform that ran in today's 
Washington Times. Today is the Federal income tax filing deadline for 
all Americans. Every April 15, we are reminded how much of our incomes 
are taken by the Federal Government and how long it takes us to figure 
out how much we owe.
  Congressman Armey and I are united in our dislike for the current tax 
system. It is unfair, burdensome, complicated, and inefficient. We need 
a system that is far simpler, fairer, honest, encourages growth and 
rewards savings and investment.
  The American people overwhelmingly favor a change in the current 
system, but we cannot radically overhaul our flawed income tax without 
the President joining our efforts. On April 15, tax day of 1997, the 
distinguished majority leader and I submit our OP-ED for the Record to 
let America know we stand on the side of real, substantial tax reform.

                         Redesigning the System

                    (By Bill Archer and Dick Armey)

       Along with the millions of Americans who have struggled to 
     meet the April 15 income tax filing deadline, we support 
     overhauling today's federal income tax. While the April 15 
     deadline reminds us all of our cumbersome tax system, its 
     problems are with us every day of the year.
       Last month's Federal Reserve decision to raise interest 
     rates amounts to a devastating indictment of our current tax 
     system. In effect, the Fed declared that in our current tax 
     and regulatory environment, we are unable to handle anything 
     more than a meager 2.4 percent growth rate without risking 
     higher inflation.
       This, to us, is unacceptable. Rather than resigning 
     ourselves to continuing low growth rates, we believe it is 
     time for bold change. When Congress' Joint Committee on 
     Taxation invited a diverse group of economists to consider 
     tax reform, everyone agreed our economy would grow faster 
     with either a national consumption tax espoused by Bill 
     Archer, chairman of the tax-writing Ways and Means Committee, 
     or under House Majority Leader Dick Armey's flat tax. We must 
     replace our existing tax code with a system that is fair, 
     honest, vastly simplified and more conducive to economic 
     growth.
       Our current tax system is complicated and unfair--it must 
     be eliminated. It imposes, by conservative estimates, $200 
     billion in annual compliance costs and immeasurable anxiety 
     on American taxpayers. By punishing work, savings and 
     investment, the current code hampers the creation of new and 
     better jobs and reduces growth in take-home pay. In addition, 
     due to high taxes, last year it took average American workers 
     until May 7 to earn enough to pay their federal, state, and 
     local tax bills.
       Not only is our tax code burdensome, it is also 
     fundamentally unfair. The current federal income tax is 
     riddled with special-interest loopholes that allow people 
     with similar incomes to pay vastly different amounts in 
     taxes. According to a recent IRS study, some people earning 
     more than $200,000 a year pay no taxes at all.
       Even if you do have to pay taxes, chances are you are not 
     paying the correct amount. Money magazine hired 45 
     professional tax preparers to fill out a hypothetical 
     family's 1996 return and they gave 45 different answers, for 
     how much that family owed in taxes. In fact, only a quarter 
     of the tax preparers came even within $1,000 of the actual 
     taxes due. Mistakes and inequity are inevitable so long as we 
     keep our ridiculously complicated code.
       We have and will continue to discuss our respective 
     proposals to fundamentally restructure how the federal 
     government collects taxes and how we can work together to 
     replace the current tax system. As a result of our 
     discussions, we have reaffirmed our support for legislation 
     to completely replace the current tax system with a new, 
     simple and fair system that:
       Applies a single, low rate to all Americans.
       Requires a supermajority of both chambers of Congress to 
     raise taxes.
       Provides tax relief for working Americans.
       Protects the rights of taxpayers and reduces tax collection 
     abuses.
       Eliminates the bias against savings and investment and 
     promotes economic growth to create jobs and opportunities for 
     our children and our grandchildren.
       We are committed to working together to elevate the debate 
     on comprehensive tax reform and to lay the groundwork in 
     Congress for the enactment of tax reform legislation that 
     meets these principles. Unfortunately, the Clinton 
     administration has so far shown an unwillingness to 
     substantially change our federal income tax. In February, the 
     congressional leadership wrote the president urging him to 
     submit a tax overhaul proposal by May 1. We will continue to 
     ask the Clinton administration to face up to its obligation 
     to beleaguered taxpayers and offer its own tax reform 
     proposal.
       Eliminating the current tax system and replacing it with a 
     simpler, fairer, pro-growth system won't be easy. A recent 
     study showed that Washington's lobbying industry employs 
     67,062 people, making it the largest private sector employer 
     in the nation's capital. The livelihood of these well-funded 
     special interests depends on preserving their favored 
     treatment in the tax code. If we want to enact meaningful tax 
     reform, America must prevail over Washington special 
     interests.
       While we may prefer slightly different paths to reach true 
     tax reform, we stand firmly united in our resolve to replace 
     today's antiquated tax system. There is no greater legacy we 
     can leave our children.

                          ____________________