[Congressional Record Volume 150, Number 98 (Thursday, July 15, 2004)]
[Extensions of Remarks]
[Page E1390]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               TAX REFORM

                                 ______
                                 

                         HON. JAMES R. LANGEVIN

                            of rhode island

                    in the house of representatives

                        Wednesday, July 14, 2004

  Mr. LANGEVIN. Mr. Speaker, today I rise to highlight the increasing 
complexity in the tax code that bogs down small businesses in my 
district.
  Shortly after President Bush took office in 2001, he declared, 
``Americans want our tax code to be reasonable and simple and fair. 
These are goals that unite our country, and these are goals that have 
shaped my plan.'' I could not agree more with the President's words, 
but unfortunately his actions have not matched his rhetoric.
  Over the past three and a half years, the federal income tax code has 
grown by more than 10,000 pages due to 227 changes, not including the 
109 proposed tax changes in the manufacturing tax bill that recently 
passed the House. Instead of helping small businesses create jobs in 
America, this legislation actually encourages companies to move workers 
abroad.
  According to the IRS, small businesses and self-employed taxpayers 
now spend an average of nearly 60 hours on tax preparation. That means 
a business owner or employee uses more than a full work week compiling 
information and filling out tax forms rather than working to grow the 
business.
  A recent GAO study concluded that small businesses overpay their 
taxes by billions of dollars per year because of tax return errors. 
Even tax preparation professionals make errors because the code is too 
complicated to know about every single available deduction.
  Republicans have been so preoccupied with cutting taxes that they 
have not taken into account the burden this new complexity causes for 
taxpayers. We need a simpler tax code that allows companies to spend 
less time filling out forms and more time on business.
  While Republicans continuously speak about making tax simplification 
a reality, they have done nothing but add to the misunderstanding and 
complexity. I urge the adoption of legislation to reduce the paperwork 
burden on our small businesses so that they can concentrate on their 
work, not deciphering the tax code.