[Congressional Record Volume 145, Number 67 (Tuesday, May 11, 1999)]
[Senate]
[Page S5102]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                   TAX FREEDOM FOR WORKING AMERICANS

  Mr. GRAMS. Mr. President, as we wrap up this work day here in the 
Senate, I want to take a little time to talk about a subject that is 
near and dear to everybody's heart, and, of course, that is taxes.
  Most Americans believe they pay too much in taxes. And you know, they 
are right.
  One of the biggest and best indicators of how exhausting the tax 
burden has become is the annual arrival of what we call Tax Freedom 
Day, and that is the day on which Americans stop working just to pay 
their State, Federal, and local taxes and actually begin working and 
keeping their earnings for themselves and their families.
  This year, Americans had to wait until today, May 11, before Tax 
Freedom Day actually arrived. At least 132 days into the year, this is 
the latest arrival of Tax Freedom Day ever.
  As a sign of just how far and fast taxes have come, in 1950, 
Americans marked Tax Freedom Day on April 3.
  For residents in my home State of Minnesota, the situation is even 
more troubling because this year's Tax Freedom Day has been pushed 
forward to May 21, nearly 2 weeks later than the rest of the country.
  That ranks Minnesota third in the Nation; only in New York and 
Connecticut do taxpayers have to wait even longer to begin keeping 
their own money.
  Tax Freedom Day, as calculated by the nonpartisan Tax Foundation, 
reveals an ever-increasing tax burden over the past 25 years. And the 
single most potent explanation for America's late Tax Freedom Day is 
our seriously flawed tax system.
  Our tax system is unfair, it is complicated, and it is designed to 
squeeze more money out of the wallets of working Americans to expand 
Government.
  Since 1993, for instance, Federal taxes have increased by 54 percent. 
Can you imagine that? Since 1993, Federal taxes have increased 54 
percent, which for the average taxpayer translates into a $2,000 per 
year increase in the amount of taxes they pay to the Federal 
Government. That is $2,000 a year more today than just 6 years ago was 
paid to the Federal Government by the average taxpayer. As a result, 
Americans today have the largest tax burden ever in history, including 
World War II, and it is still growing.
  Federal taxes now consume on average about 21 percent of our national 
income, compared to just over 18 percent in 1992. So again, 3 percent 
more of this country's GDP goes to taxes than it did just 6 years ago. 
On average, every American--each and every American--is paying $10,298 
this year in Federal, State and local taxes. On average, each American 
is paying $10,298 this year to support Government.
  A typical family now pays more of its income in total taxes than it 
spends on food, clothing, transportation, and housing combined. More 
and more middle income families are being pushed into higher tax 
brackets every year.
  Here is an example of the devastating ``middle class tax squeeze.'' 
There are more than 20 million American workers today with annual 
earnings between $30,000 and $50,000. Before 1993, they paid income 
taxes at the 15 percent tax rate. But most of them have now been pushed 
into the 28 percent tax bracket, and that is due to inflation and 
economic growth. Worse still, they have to pay the 28 percent federal 
income tax rate on top of a 15.3 percent payroll tax.
  This adds up, for average Americans making between $30,000 and 
$50,000, to a tax rate of 43 percent to the Federal Government, and 
that is without counting State, local, and other taxes. So for many 
Americans, making between $30,000 and $50,000 a year, they are paying 
about 50 percent of their income to support Government. So any gains 
the taxpayers might have made in wages have been snatched away by 
Washington in the form of a bigger tax bite. This is the most important 
reason for the late arrival of Tax Freedom Day.
  People today work hard and then are penalized for their work. With 
punitive taxes, Washington makes the American dream of working hard for 
a better life more difficult, and even for some, it makes it 
impossible.
  The only way we can effectively stop this and push back Tax Freedom 
Day is to terminate the Tax Code and replace it with one that promotes 
freedom and economic opportunity. We must repeal the 16th amendment and 
abolish the IRS.
  We must create a new tax system that is fair, simple, and friendly to 
the taxpayers--when they no longer need to file a tax return with the 
IRS, and when their families' finances aren't revealed to Government 
bureaucrats, and when they are no longer penalized for getting or 
staying married--or for dying, for that matter--when everyone pays the 
same tax rate without any loopholes for any special interest groups, 
and when hidden taxes are eliminated and everyone can easily understand 
the tax laws. And finally, there will be no more IRS audits and abuse--
because, again, we need to pull out the IRS by the roots to abolish the 
IRS entirely.

  Pending fundamental tax reforms, Congress must provide meaningful tax 
relief to help alleviate the tax burden on working Americans.
  That is why the recently-passed budget resolution reserves nearly 
$800 billion of the non-Social Security surplus over the next 10 years 
earmarking it for tax relief.
  This proves that this Congress is committed to providing meaningful 
tax relief in 1999, while protecting Social Security and Medicare, 
reducing the national debt, and funding important national priorities.
  This year's budget also includes my amendment calling on the Congress 
to place a priority on middle income tax relief by returning tax 
overpayments to those from whom it was taken.
  It includes options for tax relief, such as a broad-based tax cut, 
marriage penalty relief, retirement savings incentives, death tax 
relief, health care-related tax relief, and education-related tax 
relief. If enacted, this will be the largest tax relief since the 
Reagan tax cuts of the 1980s.
  Americans are frustrated by the late arrival of Tax Freedom Day. They 
are worried about their future economic security. And they also want 
the opportunity to put their dollars to work supporting their families, 
not supporting the Government.
  We owe it to the American taxpayer to work together to fix the system 
through fundamental tax reform. We can do this through turning Tax 
Freedom Day from a day of disappointment into a day finally worth 
celebrating.
  I thank the Chair, and I yield the floor.

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