[Congressional Record Volume 143, Number 44 (Tuesday, April 15, 1997)]
[Senate]
[Pages S3174-S3175]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         OUR SYSTEM OF TAXATION

  Mr. BURNS. Mr. President, this is likely the single most frustrating 
day of the year for many Americans. What self-respecting member of any 
legislative body would not take to the floor and talk about his or her 
favorite subject, taxes? We could all relate to the tension of the day 
and the frustration of working our way through the ``simplified'' tax 
forms, worrying about making an inadvertent mistake. But, also, how we 
are going to do what is expected of us? With April 15 now upon us, it 
is time to reflect on our system of taxation and the burden it places 
on each and every one of us who live in this country.
  I know at times the IRS finds itself as the brunt of many jokes. But 
to a lot of folks in Montana, tax day is no laughing matter. The fact 
is, families all across this Nation are forced to make some tough 
financial choices each year around this time. Serious questions are 
being asked. What can we do as a family to pay our fair share of taxes? 
By and large, Americans know, and they understand that some taxes are 
necessary to pay for the essential government services: For education, 
for the infrastructure of transportation and other services that we 
enjoy. But the question also surfaces on how to balance our family 
needs.
  All too often, the options given require sacrifices. And, you know 
what? They affect children and they affect relationships. Most times, 
it is not fair. And sometimes it is just not right.
  Unfortunately, it seems we are living in an age when only one wage 
earner cannot live financially secure and comfortable. Nowadays, in 
order to make ends meet both parents are working, even though one may 
prefer to remain home with their children. Families in which one parent 
chooses to remain at home often struggle financially, living paycheck 
to paycheck, while, on the other hand, dual-income families find a 
disproportionate share of the second check being melted away with added 
expenses of cost of child care, additional transportation needs and so 
on, and still no tax relief on the burden that is suffered on the 
second paycheck. Neither situation leaves families in a comfortable 
financial condition. Time and time again we have seen bad economic 
conditions lead to the demise of families and the family structure. Who 
suffers? Our children suffer.
  I believe it is important that we begin the process of reform, which 
will allow our families more options and, in the end, allow them to 
keep more of what they earn. Those decisions should be and could be 
made at home instead of some IRS office or, yes, an office here in 
Washington, DC. Let families decide, make the financial decision of 
what to do with their income. All the polls that I have seen taken on 
the attitudes of Americans tell us that our current system of taxation 
is in bad need of reform. I agree. Giving Montanans and all Americans 
the opportunity to be financially secure should be the goal.
  I might add at this point, the Nation's tax collection agency also 
needs to do something about its own image. That may be a feat that 
borders on the impossible, but it should be attempted. There are two 
taxes, in my estimation, that are destructive of the majority of 
families. They are death taxes--the estate taxes--and capital gains. 
Montana, my State, is a State made up of family-run farms and ranches 
and small businesses. With regard to the death taxes, upon the death of 
an owner of a small family business or a family farmer ranch, the 
family is required to pay more than 55 percent of the value of the farm 
or business value in excess of $600,000. The only thing the survivors 
want to do is simply continue operating the family business or farm.
  But in most cases, they are forced to sell it in order to pay those 
death taxes. No one--no one, Mr. President--should be forced to sell 
the farm to save the farm.
  Another equally burdensome tax is the capital gains tax, which 
punishes those who choose to save and invest for their future. This tax 
affects everybody who saves and invests to ensure they can take care of 
themselves and their loved ones. Like the estate tax, the capital gains 
tax is punitive. It is a voluntary tax. You do not have to pay capital 
gains tax because you do not have to sell. If you do not sell, you 
limit economic opportunity in the financial community.
  Like the estate tax, it is a form of double taxation, moneys taxed 
once it is earned as income and again upon the sale of an asset or 
investment, and Lord knows how many times in between, making it even 
more difficult for families to save for the future.
  The capital gains tax has a top rate of 28 percent, which is among 
the highest in the world. Many of the world's strongest economic 
powers, including Germany, Hong Kong and South Korea, have no capital 
gains tax at all. These countries recognize the importance of savings. 
They also recognize the importance of investments, and they know what 
it takes to create jobs, maintain an economic growth and stability and, 
let's face it, governments cannot take all the money and provide a 
stable financial future for anybody with the exception of those who 
choose to exploit their own government.
  There is no question in my mind, in order to strengthen the American 
family, we must make them economically secure. No matter what we say or 
how good it seems, Government cannot do that. With juvenile crime at an 
all-time high, there is no hope for young people if they cannot see a 
future that

[[Page S3175]]

allows them to use their God-given talents to ensure economic and 
political freedom.
  We must put in place those policies that allow us to provide 
essential Government services, help those who cannot help themselves 
and build the infrastructure that provides us with opportunity and 
promise for the future. We must work to ease the excessive tax burden 
being shouldered by families.
  It would be a noble work, indeed, in this Senate, if we could provide 
for the time when decisions could be made by families at the kitchen 
table with regard to their economic and political future, when parents 
had more options. We must provide them.
  Through reform and reduction of our tax burden, this process can 
begin. The opportunity exists at this time, and the time is now. It 
ensures parents the opportunity to raise their children comfortably and 
provide for a stable, financially secure future. Thank you, Mr. 
President.
  I yield the floor.

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