[Congressional Record (Bound Edition), Volume 147 (2001), Part 5]
[Senate]
[Page 6943]
[From the U.S. Government Publishing Office, www.gpo.gov]



                    COMMEMORATION OF TAX FREEDOM DAY

  Mr. GRASSLEY. Mr. President, I rise today to apprise the Senate of a 
very distressing development. Today marks Tax Freedom Day, the day when 
Americans will finally have earned enough money to pay off their tax 
bills for the year.
  This year's Tax Freedom Day marks the longest period Americans have 
ever had to work to pay their taxes. It is astounding that every hour 
worked since the beginning of this year will go solely to pay America's 
tax bills.
  The average American is shouldering a heavier tax burden than ever 
before. This year, Americans will work longer to pay for Government 
than they will to pay for food, clothing and shelter combined.
  Congress has got to put a stop to this. I am pleased to report that 
Senator Baucus and I, and the other members of the Senate Finance 
Committee, are right now working on a tax cut bill that will provide a 
real reduction in income taxes. With $1.35 trillion, we can now produce 
income tax cuts large enough that working Americans will actually see a 
difference in their paychecks.
  So what has caused the lengthiest Tax Freedom Day in our Nation's 
history? It was the Federal individual income tax increases enacted in 
1993. And here is the proof.
  The Tax Foundation is the nonpartisan, nonprofit policy group that 
calculated today's Tax Freedom Day. The Tax Foundation's analysis shows 
that the Federal tax burden grew by 14 days' pay between 1992 and 2001. 
That means that because of the 1993 tax increases, Americans now have 
to work an additional 2 weeks just to meet their Federal tax burden. 
That is equal to some Americans' vacation pay.
  In stark contrast, the Tax Foundation says State and local tax 
burdens remained virtually unchanged during this period. So the culprit 
in creating the longest Tax Freedom Day in history is the Federal 
Government.
  The biggest source of Federal revenue is the individual income tax. 
Over the past decade Federal tax collection levels for payroll taxes, 
corporate taxes, and all other taxes have been relatively stable. 
Collections of individual income taxes, however, have soared.
  In 1992, tax collections from individual income taxes were 7.7 
percent of our gross domestic product. That percentage has risen 
steadily each year, and as of the year 2000, it was an astounding 10.2 
percent of GDP. Individual income taxes now take up the largest share 
of GDP in history. Even during World War II, collections from 
individuals were 9.4 percent of GDP, nearly a full percentage point 
below the current level.
  The source of the current and projected tax surpluses is from the 
huge runups in individual tax collections. And that has given us the 
lengthiest Tax Freedom Day in our Nation's history.
  Yesterday, the members of the Finance Committee met informally to 
discuss what everyone thinks should be in the tax cut package. I think 
there was a nearly unanimous agreement that individual income tax rates 
are simply too high.
  Senator Baucus and I are working hard to put together a bipartisan 
tax cut package. I ask Members of the Senate and the American public to 
support our efforts. Our quest for real tax rate reduction is sincere 
and urgent. With an uncertain economy and excessive Federal tax 
collections, America needs action and it needs it now. American 
taxpayers expect us to deliver tax relief and we must not fail them.
  As I stand here today, I pledge to you that as chairman of the Senate 
Finance Committee, I will do everything in my power to ensure that next 
year's Tax Freedom Day will not mark the longest period Americans have 
to work to pay their taxes. And I am confident that my Democratic 
colleagues will join us in supporting this goal.

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