[Congressional Record Volume 147, Number 12 (Tuesday, January 30, 2001)]
[Extensions of Remarks]
[Pages E39-E40]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   INTRODUCTION OF LEGISLATION ENTITLED, ``REPEALING TAXES ON FAMILY 
                          VALUES ACT OF 2001''

                                 ______
                                 

                            HON. SAM JOHNSON

                                of texas

                    in the house of representatives

                       Tuesday, January 30, 2001

  Mr. SAM JOHNSON of Texas. Mr. Speaker, today I am joined by 
Representatives Phil Crane, Porter Goss, Lee Terry, and Majority Leader 
Dick Armey in the introduction of legislation that will repeal certain 
hidden taxes imposed on our American families and values.
  In the past two reports to Congress, our country's National Taxpayer 
Advocate has urged us to eliminate hidden taxes in the Internal Revenue 
Code. The National Taxpayer Advocate, unlike any top official at the 
IRS or Treasury, reports his findings and recommendations directly to 
Congress without review or revision within the agency or department. In 
one of our greatest legislative achievements, the ``IRS Restructuring 
and Reform Act of 1998,'' Congress strengthened the National Taxpayer 
Advocate's independence from the IRS in order to help address 
taxpayers' concerns.
  The National Taxpayer Advocate can now recommend legislative changes 
to the tax

[[Page E40]]

code in cases where current law creates inequitable treatment or where 
change will alleviate barriers to compliance. For the third year in a 
row, tax code complexity tops the list of taxpayer concerns. 
Accordingly, the National Taxpayer Advocate has singled out two hidden 
taxes in the Internal Revenue Code that should be repealed.
  The first of these hidden taxes is the phaseout of itemized 
deductions and personal exemptions. With regard to this hidden tax on 
our American families and values, our country's National Taxpayer 
Advocate has stated in the past that ``[n]o other tax issues are taken 
so personally. As a result, the phaseouts of itemized deductions and 
the personal exemptions are often seen by taxpayers as being especially 
unfair, creating a certain amount of resentment and cynicism. 
``[A]llowing all taxpayers to retain these deductions and exemptions 
would go a long way toward reducing burden, increasing fairness, and 
restoring faith in the tax system.''
  The second of these hidden taxes is the ``Alternative Minimum Tax'' 
or AMT. With regard to this hidden tax on our American families and 
values, our country's National Taxpayer Advocate has described the AMT 
as ``unnecessarily complex and burdensome,'' effectively operating ``as 
a separate or `parallel' tax system with many rules that differ from 
the regular tax system.'' In this year's report to Congress, the 
National Taxpayer Advocate describes the AMT as our nation's ticking 
tax time bomb--``Just three years ago, only 600,000 taxpayers were 
affected by the Alternative Minimum Tax. Over 17 million taxpayers will 
be subject to the Alternative Minimum Tax by the year 2010. Taxpayers 
with an adjusted gross income of less than $100,000 will owe 60% of the 
nation's Alternative Minimum tax by the year 2010.''
  Many taxpayers are required to make several computations just to see 
if they must figure out their tax under the AMT. Additionally, AMT 
presents significant compliance and administrative problems for the 
IRS. Finally, many taxpayers are subject to the AMT ``without being 
aware of its existence. Often, the way that many individuals first hear 
of the Alternative Minimum Tax is when they receive a notice from the 
IRS. Outright elimination of the Alternative Minimum Tax would do a 
great deal for simplification and burden reduction of the tax system 
(emphasis added).''
  I strongly support the work and conclusions of the National Taxpayer 
Advocate. This legislation will repeal both of these hidden taxes on 
American families and values.
  Additionally, this legislation will go one step further and repeal 
another hidden tax--the phaseout of the Child Tax Credit. In 1997, this 
Congress enacted legislation to return $500 in tax credits for every 
child under the age of 17. Unfortunately, budget constraints and 
opponents of this pro-family idea forced us to phaseout the Child Tax 
Credit in a complicated and unfair manner. We should not penalize any 
family who chooses to have children. All children should be treated 
equally as they are in the eyes of their Maker. Consequently, this 
legislation will also repeal this arbitrary hidden tax on American 
families.
  I urge my colleagues to join me in repealing these hidden taxes and 
restore freedom to American families.

                          ____________________