[Congressional Record (Bound Edition), Volume 145 (1999), Part 5]
[Senate]
[Page 6694]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            TAX FREEDOM DAY

  Mr. ALLARD. Mr. President, today is April 15. It is Tax Day. This is 
the deadline by which we must file our 1040 Form and pay any additional 
taxes we might owe on top of what was withheld during the year.
  Unfortunately, typical Americans will work well beyond April 15, to 
pay their taxes. This is because Tax Freedom Day does not come until 
May 11.
  Tax Freedom Day is the day in the year to which the typical American 
family must work just to pay the combined state, federal, and local tax 
burden. For many Americans the total tax burden now exceeds one-third 
of family income.
  The Tax Foundation just announced today that Tax Freedom Day will 
move one day further into the year in 1999.
  Last year it was May 10, this year it will be May 11. This is the 
latest day ever, and it marks the sixth straight year that Tax Freedom 
Day has advanced a day or more further into the year.
  As the Tax Foundation has reported year after year, in a typical 
household the tax bill now exceeds the cost of housing, food, 
transportation and clothing combined.
  In fact, in 1999 the federal tax burden will reach a peacetime high. 
Nearly 21 percent of the Gross Domestic Product--that is the wealth 
created in the country this year--will go to the federal government.
  As we approach the end of the 20th century it is useful to look back 
on the history of the tax burden.
  The Joint Economic Committee of the Congress estimates that in 1900, 
the average federal tax burden on a family was 3 percent, and the 
average state and local burden was 5 percent, for a combined total of 8 
percent.
  As the century closes the JEC estimates the average federal tax 
burden on a family is 24 percent, and the average state and local 
burden is 11 percent, for a total of 35 percent. Mr. President, we have 
come a very long way.
  The IRS estimates that 123 million families will file their tax 
returns this year. The tax code is so complex that nearly half of these 
families require the service of some type of tax professional in order 
to file their tax returns.
  This means that on top of the actual tax owed to the government, 
there is a hidden tax for millions of Americans in the form of tax-
compliance and professional services fees. Even for simple tax returns, 
this can add another $100 to the tax bill each year.
  For small businesses the tax compliance costs run into the thousands 
of dollars.
  Mr. President, it is time for fundamental tax reform. We should begin 
this process by reducing income tax rates across the board.
  We should also eliminate complex and punitive taxes such as the 
estate and gift tax, and we should continue to build on our successful 
reform of the IRS by making it possible for most Americans to comply 
with the tax system with minimal expense and effort.
  The federal government is too big, and it costs too much. We should 
use the budget surplus for two things, reduction of the federal debt, 
and tax relief.
  The surplus belongs to the American people, it does not belong to the 
government. For decades the cost of government has risen, Tax Freedom 
Day has moved later and later into the year.
  Mr. President, it is time for us to begin rolling back Tax Freedom 
Day. Let's give the American family a well earned break.

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