[Congressional Record Volume 161, Number 54 (Wednesday, April 15, 2015)]
[Senate]
[Pages S2189-S2190]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAX DAY
Mr. THUNE. Mr. President, it has been said that April is the cruelest
month. I think that pretty much captures how Americans feel as tax day
approaches each year. This year, Americans will spend 114 days working
to pay their Federal, State, and local taxes. In other words, Americans
may have submitted their Federal tax returns or be getting ready to
submit them tonight, but they are still not done working off their
taxes. In fact, Americans won't start earning a dollar for themselves
until April 25, almost one-third of the way through the year.
Americans spend 6.1 billion hours every year trying to comply with
the Tax Code. That is an average of 19 hours for every man, woman, and
child in the United States or an average of 76 hours for a family of
four. Almost half of small businesses spend more than $5,000 each year
on tax compliance; that is $5,000 on top of their tax bill.
Paying taxes is never going to be on the top of Americans' list of
favorite activities, but it doesn't have to be the torturous process it
has become. The Tax Code takes too much time to comply with, and it
takes too much money from hard-working Americans.
Comprehensive tax reform is long overdue. Unfortunately, instead of
tax reform, under the Obama administration Americans have just gotten
more taxes. The President's health care law created or raised taxes to
the tune of more than $1 trillion over the first decade. Several of
those taxes have hit families making less than $250,000 a year, despite
the President's campaign pledge not to raise taxes on families making
less than $250,000.
Let's take the ObamaCare medical device tax. Thanks to this tax,
families are now facing higher prices on lifesaving medical equipment
such as pacemakers and insulin pumps. ObamaCare taxes are also driving
up prices for families on essential drugs such as EpiPens and asthma
medications. Other ObamaCare taxes are costing American families in
other ways.
The ObamaCare employer mandate tax is discouraging employers from
expanding and hiring, which means fewer
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jobs and opportunities for American workers. Then there is the
individual mandate tax that last year began hitting American families
without government-approved insurance. For 2015, the individual mandate
tax penalty is $325 per person or 2 percent of household income,
whichever is greater. In 2016, that tax penalty will rise to $695 per
person or 2\1/2\ percent of household income, whichever is greater.
But that is not all ObamaCare is bringing to tax season. This year, a
full half of Americans receiving ObamaCare health insurance subsidies
discovered they have to pay back some or all of their subsidies because
they didn't estimate their income correctly. Ultimately, just 4 percent
of households receiving subsidies had the correct subsidy advanced to
their insurance companies. Unfortunately, the confusion and mistakes
are par for the course for ObamaCare. The administration apparently
finds the law so confusing that it sent out incorrect ObamaCare forms
to more than 800,000 people. Yet the administration wants us to believe
ObamaCare is somehow working.
We need to repeal this broken law and its trillion dollars' worth of
taxes, and we need to reform our bloated Tax Code. We need to cut rates
for families so that Americans can spend more of the year working for
themselves and less of the year working for the Federal Government. We
need to cut rates for businesses, both large and small. The U.S.
currently has the highest corporate tax rate in the developed world.
That puts American businesses at a huge disadvantage compared to their
foreign competitors, and American workers suffer the consequences--
lower wages and fewer opportunities. Reforming both corporate and
individual tax rates would go a long way toward making American
businesses more competitive and opening new opportunities and higher
paying jobs for American workers.
Of course, any tax reform measure should include reforms to the IRS.
From mishandled customer service to the Agency's most serious
offenses--the First Amendment violations involving the deliberate
targeting of groups for extra scrutiny based on their political
beliefs--this Agency, the IRS, is long overdue for reform.
The IRS Commissioner himself, John Koskinen, was quoted in Monday's
Washington Post as saying: ``We certainly can't afford to have taxpayer
service be any worse than it is, although it is hard to imagine it
being much worse than it is.'' That is a quote from the IRS
Commissioner himself. When even the IRS Commissioner admits the
Agency's taxpayer services can't get much worse, that is a signal the
Agency is ripe for reform.
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