[Congressional Record Volume 149, Number 70 (Monday, May 12, 2003)]
[Senate]
[Page S6030]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SHELBY (for himself, Mr. Miller, and Mr. Smith):
  S. 1040. A bill to promote freedom, fairness, and economic 
opportunity for families by reducing the power and reach of the Federal 
establishment; to the Committee on Finance.
  Mr. SHELBY. Mr. President, I rise today to once again introduce my 
flat tax bill, S. 1040. Although I fully support the President's plan 
for economic growth, I believe that we can do even better. Like the 
President's plan, my bill eliminates the double taxation of dividends. 
However, instead of retaining the current progressive tax rates that 
impede economic growth, S. 1040 creates a single rate for all 
taxpayers--seventeen percent when the tax is fully implemented--and 
gives tax-free treatment to all savings and investment, not just 
dividends.
  A major reason why I support the flat tax is because it will place 
more money into the hands of hardworking Americans and will allow 
individuals--not the government--to decide how to best spend their 
money. Lowering taxes gives Americans more money for a large number of 
things such as monthly bills, insurance coverage, educational costs, 
prescription drugs, and family getaways. Lowering taxes also makes it 
easier for Americans to plan for their future through private savings. 
Although I strongly believe in the importance of private savings, my 
bill leaves the Social Security system intact and, in fact, provides 
seniors with more money by repealing the current tax on Social Security 
benefits.
  I have said many times before that our current progressive tax system 
is unfair in that it punishes success. The only way to ensure true 
fairness is to adopt a single tax rate for all taxpayers. Transitioning 
to such a tax will not only increase the fairness of the tax code, but 
it will also increase the incentives to work and thus boost economic 
growth.
  The flat tax is not only fairer than the current income tax, but it's 
also undeniably less complex. Under a flat tax, taxpayers would be able 
to fit their return on a form the size of a post card. Rather than 
spending hours pouring over convoluted IRS forms, or resorting to 
professional tax assistance, the flat tax allows taxpayers to determine 
their taxes quickly and easily. Paying taxes may never be a pleasant 
experience, but at least under a flat tax it wouldn't be mind-boggling.
  I fully realize that the bill I am introducing today is a monumental 
shift from the current tax code. However, we must not allow the 
enormity of the task to deter us from enacting better, more efficient 
tax laws. I therefore urge my colleagues to join me in support of this 
legislation.
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