[Congressional Record Volume 163, Number 178 (Thursday, November 2, 2017)]
[Senate]
[Pages S6976-S6977]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                               Tax Reform

  Mrs. CAPITO. Mr. President, I rise to give my fifth in a series of 
speeches addressing what I think will be a monumental achievement of 
this Senate and House when we pass our tax reform bill.
  I have spoken previously about how I believe tax reform will be good 
in a lot of different ways. First of all, I talked about how this tax 
reform bill will spur economic growth in our country. Second, I talked 
about how it would grow jobs in small businesses. Third, I talked about 
the benefits working-class families will have through policies such as 
the child tax credit.
  So today I rise to talk about the importance of tax simplification. 
According to a publisher who analyzed the issue, since 1913, the 
Federal Tax Code is 187 times longer than it was a century ago. On top 
of the Tax Code itself that spans thousands of pages, there are 
additional IRS regulations that are complicated, and you need somebody 
not just to figure them out for you and interpret them for you but to 
figure out how that translates to your own tax return. Of course, 
taxpayers have to comply with all of these.
  Beyond the code and the regulations, there are countless IRS 
procedures, technical memorandums, and more, and all of this adds to 
the length and complexity of our tax system. You can see it when you 
turn toward the April 15 date, the stress level in this country really 
rises, and a lot of it has to do with the complications of our tax 
system.
  The point is this, when it comes to figuring out your taxes, it is 
just far too complex. That is why businesses and individuals spend 6 
billion hours a year complying with the Tax Code. That is more than 18 
hours for every man, woman, and child in this country. That is 
equivalent to 3 million people working full time--3 million people 
working full time to comply with the Tax Code and fill out your tax 
forms or, another way of looking at it, that is $195 billion in lost 
productivity.
  Again, our Tax Code is just too complicated, and that is also what 
tax reform is about, simplifying and making it easier for Americans to 
comply.
  According to the Brookings Institution, ``The notion that taxes 
should be simpler is one of the very few propositions in tax policy 
that generates almost universal agreement.''

[[Page S6977]]

  Despite years of bipartisan talks, we are now on the verge of major 
tax reform for the first time in 30 years. Making our Tax Code simpler 
will benefit every single working family in this country. By roughly 
doubling the standard deduction, filing your taxes will be easier and 
more understandable. The higher standard deduction will let more 
middle-class Americans benefit from not just lower taxes but also 
without the hassle of itemizing your tax return. Lower rates and fewer 
deductions will help all Americans spend less time and energy and worry 
on tax compliance.
  Our goal is for the overwhelming number of Americans to be able to 
submit their tax forms on a single sheet of paper without all those 
extra forms, and for many families in West Virginia and around the 
country who already use the standard deduction, increasing it will 
reduce their taxes. Now, 83 percent of West Virginians last year--or 
maybe it was the year before, 2015, 2016--83 percent filed a simple 
form.
  Simplicity in our Tax Code and relief for middle-class families, 
those are the reasons I offered a straightforward amendment to the 
Senate's budget resolution. My amendment said Congress should focus on 
eliminating deductions that primarily benefit wealthier individuals in 
favor of tax policy that benefits the middle class. Let me say that 
again. Congress should focus on eliminating deductions that primarily 
benefit wealthier individuals in favor of tax policy that benefits the 
middle class. That means a tax code that is simpler with fewer 
deductions and lower rates.
  It will not just be individuals and families who benefit from a less 
complicated tax code. Tax simplification will help our small businesses 
start, grow, and succeed. Ninety-five percent of the businesses in my 
State of West Virginia are small businesses, and they employ over half 
of West Virginia's private sector workforce. So in addition to their 
high marginal tax rate, the complexity and compliance cost of their 
taxes impedes their economic growth, impedes their ability to grow 
their job, raise their wages, spur growth. A CNBC survey found that 22 
percent of small business owners aren't sure what their effective tax 
rate really is. If Congress can simplify the code just to cut 
compliance costs in half, that would free up significant resources that 
could be used to grow the economy. Given that 50 percent of U.S. job 
growth has occurred in just 2 percent of our country's counties, we 
need that growth. Think about that. Over the last several years, 50 
percent of the U.S. job growth has only occurred in 2 percent of our 
country's counties. We need the rest of the country to be able to enjoy 
that growth. To do that, we need to help the small businesses that are 
the major economic drivers in our economy.
  Simplifying the Tax Code will benefit so many across this country 
through GDP growth and higher wages. I look forward to working with my 
colleagues to make tax reform and tax simplification a reality.
  Thank you.
  I yield the floor.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. SCHUMER. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Strange). Without objection, it is so 
ordered.