[Congressional Record Volume 156, Number 75 (Tuesday, May 18, 2010)]
[House]
[Page H3517]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
THE FAIR TAX AND TAX REFORM
The SPEAKER pro tempore. Under a previous order of the House, the
gentlewoman from Florida (Ms. Ros-Lehtinen) is recognized for 5
minutes.
Ms. ROS-LEHTINEN. Mr. Speaker, this year Americans worked almost 100
days, from January 1 to April 9, to pay taxes at the Federal, State,
and local levels, which is more than one-fourth of their income. I
believe that it is totally unacceptable to require already stressed
families to give up such a high share of their income while bloated
Federal bureaucracy continues to expand during a severe recession. To
reduce this burden, Congress should now focus on reforming the current
complicated tax structure which makes it so much more difficult for
families and small business owners to experience economic recovery.
As I called for in my last speech on tax reform, the chairman of the
House Ways and Means Committee, the gentleman from Michigan (Mr.
Levin), needs to schedule hearings on tax reform simplicity as soon as
possible. The Fair Tax proposal is one of those ideas that I believe
the committee must consider. The Fair Tax is definitely a serious
proposal that is backed by many Americans, including so many
constituents of my congressional district, and it deserves our full
consideration.
The Fair Tax would replace all Federal income and payroll-based taxes
with a national retail sales tax and includes a rebate to ensure that
no American below the poverty level pays Federal taxes. If enacted, the
Fair Tax proposal would provide a dollar-for-dollar Federal revenue
neutrality. According to the proposal's advocates, the Fair Tax would
reform the current tax code. Today's tax code is unfair, costly, and
confusing, and is so complex that many of us pay more in taxes per year
than we should. It is estimated that the present system costs taxpayers
$265 billion for tax filing, tax record-keeping, tax reduction advice,
et cetera, which is $900 for every man, woman and child in America.
This is taxation without comprehension.
The current income tax code inhibits economic growth, it inhibits
capital formation, and it inhibits job creation. Fair Tax supporters
believe tax reform can correct these problems by greatly reducing the
high cost of compliance in the present system while lifting the income
tax burden on production. I believe that a fair and balanced look at
the Fair Tax should begin the conversation on tax reform, and I
encourage my colleagues who are serious about having this discussion to
join me in contacting the chairman.
Congress needs to remember the sacrifices that are made by each
American family by making a real effort at tax reform this year.
As the American economy continues to stagnate with a record 10
percent unemployment rate, Congress needs to respond by taking a close
look at tax reform, and yes, the Fair Tax also.
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