[Congressional Record Volume 145, Number 51 (Wednesday, April 14, 1999)]
[Extensions of Remarks]
[Page E643]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                       THE TAX FREEDOM RESOLUTION

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                            HON. SAM JOHNSON

                                of texas

                    in the house of representatives

                       Wednesday, April 14, 1999

  Mr. SAM JOHNSON of Texas. Mr. Speaker, today I have introduced the 
``Tax Freedom Resolution'', H.J. Res. --, that will repeal the 16th 
amendment to the Constitution. This resolution will reverse one of the 
most destructive amendments to the U.S. Constitution and deny Congress 
the ability to lay and collect taxes on income.
  I believe that the 16th amendment has created a system that is 
economically destructive, impossibly complex, overly intrusive, 
unprincipled, dishonest, unfair, and inefficient. Now is the time for 
us to restore freedom to the American taxpayer.
  The tax Freedom Resolution is the first step to do just that. It will 
encourage an open, honest and constructive debate about why our current 
tax structure has failed and what we can expect in a new system.
  You may ask why we need to repeal the 16th amendment. The answer is 
quite simple. The current system cannot be fixed. It has already 
undergone 32 major revisions and 400 minor ones in the past 40 years. 
Each time the revisions has been made the system becomes more and more 
complicated and unfair.
  The IRS has hundreds and hundreds of different tax forms, plus 
countless more to explain how to fill out these forms. The original Tax 
Code had 11,400 words in it. Today it has well over 7 million words.
  Our current system also discourages savings and investment while 
hampering economic growth. Complying with the Federal Tax Code costs 
taxpayers more than $250 billion each year. In 1991, the Tax Foundation 
reported that small corporations spent a minimum of $382 in compliance 
costs for every $100 they paid in income taxes.
  In addition, several economists have said that replacing the current 
tax system will cause interest rates to go down and savings and capital 
investment to increase.
  Right now, we have a system that stiffles opportunity by picking 
winners and losers. It's a system in which Washington, DC, decides what 
is best for the American people instead of letting the people decide 
what is best for America.
  The Federal Government simply takes too much money out of people's 
pockets. As recently as 1982, Americans paid only 19.9 percent of their 
income in taxes. New data reveals that in 1998. Americans paid 35.4 
percent of their income in taxes--the highest level in history and 
increasing each year. In fact, Tax Freedom Day 1998 was May 10th, which 
means that Americans are working, on average 129 days before paying off 
their total tax bill. We must stop this confiscatory trend.
  By embracing the principles of FREEDOM, we can create a system that 
is Fair and simple, that Reduces the federal bureaucracy, that 
Encourages savings and investment, that is Efficient, that Drives the 
economy, that creates Opportunity for all, and that puts More money in 
American pockets.
  Fundamental and comprehensive tax reform will be one of the most 
profound and liberating changes our nation experiences. It is time for 
all of us--whether you support a flat tax, a consumption tax, a value-
added tax, or a national sales tax--to come together and focus on our 
common goal: Replacing the current system. The Tax Freedom Resolution 
gives us the chance to do just that and at the same time restore 
FREEDOM to the American taxpayer.

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