[Congressional Record Volume 155, Number 1 (Tuesday, January 6, 2009)]
[Extensions of Remarks]
[Pages E4-E5]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      THE FAIR AND SIMPLE TAX ACT

                                 ______
                                 

                           HON. DAVID DREIER

                             of california

                    in the house of representatives

                        Tuesday, January 6, 2009

  Mr. DREIER. Madam Speaker, virtually everyone is talking about the 
need for us to have a second economic stimulus package. From falling 
home prices to rising unemployment, there is no doubt that the economic 
volatility our nation has experienced over the past few months has 
caused great uncertainty and there are many needs that have to be met. 
As we seek to get our economy back on track, I am very proud to be 
introducing what I think is the closest thing to a panacea to the 
economic growth challenge that we are facing.
  This plan, known as Fair and Simple Tax Act, or simply FAST, would 
cut the number of tax brackets in half, with three simple tax rates--10 
percent on the first $40,000 in income, 15 percent on incomes between 
$40,000 and $150,000 and 30 percent on any income above $150,000, 
significantly reducing the burden on taxpayers at all income levels. 
Furthermore, it will dramatically simplify the tax filing process by 
creating a one-page tax form that implements the three-tier simplified 
marginal rate structure, while retaining many of the popular 
deductions, including mortgage interest, state and local taxes, 
charitable giving, the personal exemption and the child tax credit.
  But the FAST Act is about much more than just lowering marginal tax 
rates for working families or making that April 15 deadline easier to 
meet each year. It's about getting our economy growing again and 
creating new opportunities. This bill reduces the capital gains rate 
from 15 percent to 10 percent, lowers the top corporate rate from 35 
percent to 25 percent and permanently extends the research and 
development tax credit. These provisions will not only promote new 
economic growth, but they will also make the U.S. economy more 
competitive and help to provide the tax certainty that spurs investment 
and capital improvements.
  The FAST Act will permanently end the death tax and will further 
index the alternative minimum tax (AMT) to inflation, ensuring that 
fewer taxpayers are impacted each year. It also permanently extends the 
2001 and 2003 pro-growth tax cuts.
  Finally, the FAST Act will enable Americans to better prepare for 
their future needs. This legislation creates three new, tax-free 
savings accounts: the Retirement Savings Account and the Lifetime 
Savings Account, both providing a $5,000 tax-free contribution, and the 
Lifetime Skills Savings Account, which provides a $1,000 tax-free 
contribution. Additionally, the FAST Act provides a $7,500 tax 
deduction for individuals and a $15,000 tax deduction for families who 
do not receive employer-sponsored health coverage. This expanded 
deduction will provide individuals and families with additional 
assistance to purchase healthcare and allows unspent funds to be 
allocated to a Health Savings Account (HSA). Each of these provisions 
will help Americans to secure their financial futures by saving for 
healthcare costs, continuing education and retirement.
  Madam Speaker, our nation is facing a severe economic crisis that 
must be addressed

[[Page E5]]

comprehensively. I believe that the FAST Act will go a long way toward 
providing the simplicity, fairness and clarity that are needed for 
long-term growth. As we consider economic stimulus proposals in the 
days and weeks ahead, I hope my colleagues will join me in pursing this 
pro-growth reform agenda.

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