[Congressional Record Volume 146, Number 100 (Thursday, July 27, 2000)]
[Extensions of Remarks]
[Pages E1378-E1379]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     NATIONAL ADVISORY COMMISSION ON TAX REFORM AND SIMPLIFICATION

                                 ______
                                 

                            HON. JIM DeMINT

                           of south carolina

                    in the house of representatives

                        Thursday, July 27, 2000

  Mr. DeMINT. Mr. Speaker, the journey of a thousand miles begins with 
a single step. This was true when our founding fathers decided to 
pledge their lives, their fortunes, and their sacred honor to secure 
freedom and democracy in our country. It is also true of our work in 
Congress, where even the most difficult tasks must begin with a single 
step.
  Today we are here to take the first-step on an issue crucial to the 
American people and to me--fundamental tax reform. My friend Rob 
Portman and I are introducing legislation creating a national 
commission on fundamental tax reform and simplification. The Portman/
DeMint bill establishes a commission to study tax reform. and report to 
Congress with findings and recommendations, so we can go forward.
  A similar commission was passed as part of my friend Steve Largent's 
bill which would

[[Page E1379]]

sunset the Federal Tax Code and allow Congress to debate a replacement. 
I am still hopeful the Senate will do the right thing and take up that 
bill. However, it is becoming increasingly clear that this is an issue 
that, if we hope to make serious progress, we must have a serious 
study. A serious and comprehensive report to Congress and the President 
will allow us to move forward on this issue with some foundation.
  The Tax Code has become so intrusive, it invades the daily decisions 
of families and businesses. I know this from my own experience in 
starting and running a small business, as well as from raising a 
family. As Americans, I know we can do better.
  There is no question that fundamental tax reform is desperately 
needed. The Federal Tax Code is 7 million words long, a patchwork maze 
of complexity and confusion. It is intrusive, invasive, and overly 
complex--as my constituents continually remind me.
  The majority of Americans now turn to tax professionals to prepare 
their tax forms. This is hard to believe, but it is true. Many have no 
choice--they simply do not understand all the tricks and traps. 
Unfortunately, many of these same tax professionals are calling for tax 
reform and simplification as well. I have spoken with accountants and 
tax professionals from my district who have told me of their struggles 
and uncertainty.
  This is not just my district. In 1998, Money Magazine asked 46 tax 
professionals to calculate a hypothetical family's tax 
responsibilities. Not one got the correct answer, and no two even got 
the same answer. When tax professionals do not understand the Federal 
Tax Code, what about American families?
  There are exemptions you may never know you qualified for, and 
deductions you forgot to take. There are different rates, and different 
dates by which you need to file different forms to qualify for those 
rates. There are ways in which money must be moved through a complex 
series of traps to avoid paying maximum taxes, and there are mine 
fields of forms you may never have known existed, which you needed to 
file last week to avoid the fine you just received. And there are 
people who make their living mapping out the maze and guiding others 
through this code. I do not fault these people--it is a good living, 
and they are only dealing with something that we in Congress created. 
But is this the best we can do? Is this in keeping with a government of 
the people, by the people, for the people?
  The Internal Revenue Service, which is generally made up of honorable 
men and women, has been given the task of managing this monster. It 
takes 136,000 people to administer our federal tax laws. The FBI 
employs less than 30,000--and they combat terrorism.
  Since 1986, there have been over 5400 modifications to the Tax Code--
and it is still not fixed.
  We must return fairness and simplicity to our federal tax policy. I 
recognize this will not be an easy task, I know that some are 
comfortable with the way things are, but I believe it is the right 
thing to do.
  I believe we are most secure when we are most free, and the 
complexity and confusion of the federal tax code hinders our freedom. I 
am convinced that we can do better.
  The journey of a thousand miles begins with a single step. When I 
came to Congress, I came with a dream of increasing freedom for people. 
In this, I continue to dream of a world in which Americans live under a 
tax code that is simple and fair, a code that makes sense. To get 
there, it takes courage. To get there, we must take the first step.
  I invite my colleagues to cosponsor the Portman/DeMint tax reform 
commission bill and help us move forward on this issue in a responsible 
way. We can get a handle on this issue, and get a foothold to move 
forward with fundamental tax reform. This is what the American people 
have entrusted us to do, and I ask for your help in securing the future 
for our country.

                          ____________________