[Congressional Record (Bound Edition), Volume 146 (2000), Part 1]
[Extensions of Remarks]
[Page 1127]
[From the U.S. Government Publishing Office, www.gpo.gov]



INTRODUCTION OF LEGISLATION ENTITLED, ``FAMILY VALUES TAX RELIEF ACT OF 
                                 2000''

                                 ______
                                 

                            HON. SAM JOHNSON

                                of texas

                    in the house of representatives

                      Thursday, February 10, 2000

  Mr. SAM JOHNSON of Texas. Mr. Speaker, today I have introduced 
legislation, H.R. 3612 that will repeal certain hidden taxes imposed on 
our American families and values.
  In his latest report to Congress, our country's National Taxpayer 
Advocate, W. Val Oveson, urges us to eliminate hidden taxes in the 
Internal Revenue Code. The National Taxpayer Advocate, unlike any top 
official at the IRS or Treasury, reports his findings and 
recommendations directly to Congress without review or revision within 
the agency or department. In one of our greatest legislative 
achievements, the ``IRS Restructuring and Reform Act of 1998,'' 
Congress strengthened the National Taxpayer Advocate's independence 
from the IRS in order to help address taxpayers' concerns.
  The National Taxpayer Advocate can now recommend legislative changes 
to the tax code in cases where current law creates inequitable 
treatment or where change will alleviate barriers to compliance. For 
the second year in a row, Mr. Oveson has reported that tax code 
complexity tops the list of taxpayer concerns. Accordingly, the 
National Taxpayer Advocate has singled out two hidden taxes in the 
Internal Revenue Code that should be repealed.
  The first of these hidden taxes is the ``phaseout of itemized 
deductions and personal exemptions.'' With regard to this hidden tax on 
our American families and values, our country's National Taxpayer 
Advocate states that ``[n]o other tax issues are taken so personally. 
As a result, the phaseouts of itemized deductions and the personal 
exemptions are often seen by taxpayers as being especially unfair, 
creating a certain amount of resentment and cynicism. ``[A]llowing all 
taxpayers to retain these deductions and exemptions would go a long way 
toward reducing burden, increasing fairness, and restoring faith in the 
tax system.''
  The second of these hidden taxes is the ``Alternative Minimum Tax'' 
or AMT. With regard to this hidden tax on our American families and 
values, our country's National Taxpayer Advocate describes the AMT as 
``unnecessarily complex and burdensome,'' effectively operating ``as a 
separate or `parallel' tax system with many rules that differ from the 
regular tax system.'' Many taxpayers are required to make several 
computations just to see if they must figure out their tax under the 
AMT. Additionally, AMT presents significant compliance and 
administrative problems for the IRS. Finally, many taxpayers are 
subject to the AMT ``without being aware of its existence. Often, the 
way that many individuals first hear of the Alternative Minimum Tax is 
when they received a notice from the IRS. Outright elimination of the 
Alternative Minimum Tax would do a great deal for simplification and 
burden reduction of the tax system (emphasis added).''
  I strongly support the work and conclusions of the National Taxpayer 
Advocate. My bill will repeal both of these hidden taxes on American 
families and values.
  Additionally, my bill will go one step further and repeal another 
hidden tax--the phaseout of the Child Tax Credit. In 1997, Republicans 
in Congress enacted legislation to return $500 in tax credits for every 
child under the age of 17. Unfortunately, budget constraints and 
opponents of this pro-family idea forced us to phaseout the Child Tax 
Credit in a complicated and unfair manner. We should not penalize any 
family who chooses to have children. All children should be treated 
equally as they are in the eyes of their Maker. Consequently, my bill 
will repeal this arbitrary hidden tax on American families.
  Finally, these three hidden taxes also worsen the marriage penalty. 
The American Institute of Certified Public Accounts (AICPA) has listed 
these three hidden taxes in its list of ``ways the tax code may drive 
up a tax bill when a married couple files together.'' It is just not 
right that our tax code forces married couple to pay more in taxes than 
two people living together.
  I urge my colleagues to join me in repealing these hidden taxes and 
restore freedom to American families.

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