[Congressional Record Volume 145, Number 43 (Thursday, March 18, 1999)]
[Senate]
[Pages S2948-S2949]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COVERDELL (for himself, Mr. Hagel, Mrs. Hutchison, Mr. 
        Kyl, Mr. Inhofe, and Mr. Grassley):
  S. 665. A bill to amend the Congressional Budget and Impoundment 
Control Act of 1974 to prohibit the consideration of retroactive tax 
increases; to the Committee on the Budget and the Committee on 
Governmental Affairs, jointly, pursuant to the order of August 4, 1977, 
that if one Committee reports, the other Committee has 30 days to 
report or be discharged.


                 coverdell RETROACTIVE TAX BAN PACKAGE

  Mr. COVERDELL. Mr. President, today I rise to offer a tax reform 
package to provide greater tax fairness and to protect citizens from 
retroactive taxation. This package includes three initiatives: a 
constitutional amendment called the retroactive tax ban amendment, a 
bill to establish a new budget point of order against retroactive 
taxation, and a proposed Senate Rule change.
  The first, the retroactive tax ban amendment, is a constitutional 
amendment to prevent the Federal Government from imposing any tax 
increase retroactively. The amendment states simply ``No Federal tax 
shall be imposed for the period before the date of enactment.'' We have 
heard directly from the taxpayers, and looking backward for extra taxes 
is unacceptable. It is not a fair way to deal with taxpayers.
  In addition, I am introducing a bill that would create a point of 
order under the Budget Act against retroactive tax rate increases. 
Because amending the Constitution can be a very long prospect--just 
look at the decades-long effort on behalf of a balanced budget 
amendment--I believe this legislation is necessary to provide needed 
protection for American families from the destabilizing effects of 
retroactive taxation.
  Finally, I am proposing a Senate Rule change making it out of order 
for the Senate to consider retroactive tax rate increases.
  Both proposals, the point of order under the Budget Act and the 
Senate Rule change, are modeled after the existing House Rules 
preventing that body from considering retroactive taxation. In other 
words, by virtue of the fact that the House cannot consider legislation 
so too has the Senate been de facto unable to consider retroactive tax 
rate increases. Now is the time for the Senate to come forward and 
incorporate this fact in its proceedings.
  It was clear to Thomas Jefferson that the only way to preserve 
freedom was to protect its citizens from oppressive taxation. Even the 
Russian Constitution does not allow you to tax retroactively. 
Retroactive taxation is wrong, and it is morally incorrect.
  Families and businesses and communities must know what the rules of 
the road are and that those rules will not change. They have to be able 
to plan their lives, plan their families, and

[[Page S2949]]

plan their tax burdens in advance. They cannot come to the end of a 
year and have a Congress of the United States and a President come 
forward and say, ``All your planning was for naught, and we don't 
care.''
  I encourage my Colleagues to join me in protecting taxpayers from 
retroactive tax rate increases.
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