[Congressional Record (Bound Edition), Volume 151 (2005), Part 14]
[Extensions of Remarks]
[Pages 19368-19369]
[From the U.S. Government Publishing Office, www.gpo.gov]




TESTIMONY BEFORE THE COMMITTEE ON WAYS AND MEANS SUBCOMMITTEE ON SELECT 
                            REVENUE MEASURES

                                 ______
                                 

                        HON. DENNIS J. KUCINICH

                                of ohio

                    in the house of representatives

                        Thursday, July 28, 2005

  Mr. KUCINICH. Mr. Speaker, I would like to submit my testimony on 
Select Revenue Measures before the Committee on Ways and Means for the 
Record:

       Thank you Chairman Camp and Ranking Member McNulty for 
     holding this important hearing. I would like to bring to your 
     attention a proposal I introduced last Congress, H.R. 3655, 
     the Progressive Tax Act of 2003, which will have a positive 
     impact on millions of taxpayers.
       I think it is fair to say that all Members of Congress 
     believe we need to strive for a fair, simple, and adequate 
     tax system. We may disagree on how this has been 
     accomplished, but we have the same goals.
       However, I think we can agree on the need for transparency. 
     Transparency in the tax system is necessary to achieve 
     fairness. Transparency permits the taxpayer to understand how 
     fairness is arrived in the tax code. A simplified tax code 
     can provide this transparency, which in turn provides a sense 
     of trust in the government.

[[Page 19369]]

       This committee should enact my proposal to create a $2000 
     Simplified Family Credit, a refundable tax credit that 
     simplifies the tax code by consolidating the Earned Income 
     Tax Credit (EITC), Child Tax Credit, Additional Child Credit, 
     and dependent exemption for children into one streamlined 
     Simplified Family Credit. This tax credit will simplify the 
     tax code, provide greater transparency, provide extra work 
     incentives, and provide a stimulus effect.
       Families should not have to struggle to understand the 
     eligibility requirements for each of the various family tax 
     breaks in current law. All families should follow the same 
     set of rules.
       The Simplified Family Credit is structured to provide 
     progressive tax benefits and a work incentive. The families 
     with lower income will get more benefit, but they are also 
     rewarded for work. The credit would be steeply phased in at 
     the lowest income levels providing the incentive to work and 
     a substantial benefit. As income rises a slow phase out would 
     be necessary to ensure we maintain a progressive tax system.
       The cost of this proposal would fall in the range of $20 
     billion a year. Given our current deficit problems, I believe 
     that Congress should only create the Simplified Family Tax 
     Credit if it is paid for. In my legislation H.R. 3655, there 
     are several options to pay for this proposal including 
     rolling back parts of the tax cuts enacted in the last 5 
     years. Those tax cuts only added to the complexity of the tax 
     code and removed any remaining transparency.
       Thank you for this opportunity to testify today.

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