[Congressional Record Volume 154, Number 61 (Thursday, April 17, 2008)]
[Extensions of Remarks]
[Page E653]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           TAXPAYER ASSISTANCE AND SIMPLIFICATION ACT OF 2008

                                 ______
                                 

                               speech of

                          HON. STENY H. HOYER

                              of maryland

                    in the house of representatives

                        Tuesday, April 15, 2008

  Mr. HOYER. Madam Speaker, today, as millions of Americans prepare to 
file their Federal income tax returns by midnight, many will be 
confounded, confused and, yes, perhaps even cranky because of our 
unbelievably complicated tax code, and, I don't think there's a person 
in this body who will blame them.
  Our tax code is a maze of complexity that creates confusion and, yes, 
unfairness. In fact, between 2001 and 2006--when our Republican 
colleagues controlled the Congress and the White House--they added more 
than 10,000 pages to the Internal Revenue Code and regulations.
  It now takes people an average of 34 hours to complete a 1040 long 
form. It's no wonder that 62 percent of Americans rely on a tax 
professional to prepare their returns.
  The Democratic majority has been focused for years on making our Tax 
Code fairer and simpler--and doing so in a fiscally responsible way, 
but this issue also demands Presidential leadership. We know that from 
experience.
  The last real tax reform occurred 22 years ago when President Reagan 
and Dan Rostenkowski, then Chairman of the Ways and Means Committee, 
came together to streamline our Tax Code.
  When a new President takes office in January 2009, I believe that 
this should be an issue near the top of the agenda--particularly an 
effort to reform the dreaded alternative minimum tax.
   Today, we will consider the ``Taxpayer Assistance and Simplification 
Act,'' which makes small, but important reforms to our Tax Code.
  Among other things, this bill will:
  Strengthen taxpayer protections from identity theft and tax fraud;
  Expand assistance for low-income taxpayers;
  Close tax loopholes that allow Government contractors to set up sham 
companies in foreign jurisdictions to avoid paying Social Security and 
Medicare taxes; and
  End the private collection of Federal income taxes.
  Just this morning, the Washington Post reported that the Internal 
Revenue Service expects to lose more than $37 million by using private 
debt collectors to pursue tax scofflaws.
  That's right--private companies hired to collect tax revenue that the 
IRS does not have the resources to pursue actually cost the Federal 
Government--i.e., taxpayers--more than they bring in.
  Furthermore, let me say that there clearly is something wrong with 
our Tax Code when the costs of noncompliance--the so-called ``tax 
gap''--is an estimated $345 billion a year. The reality is, this tax 
gap is only going to be narrowed and closed when we get serious about 
real tax reform.
  Until that day, Mr. Speaker, we must do what we can to make our tax 
laws fairer and simpler. This legislation is an important step in that 
regard.
  I urge my colleagues on both sides of the aisle to vote for this 
bill, and, in the months ahead, to come together--like we did in 1986--
in support of real tax reform.

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