[Congressional Record (Bound Edition), Volume 154 (2008), Part 3]
[House]
[Pages 3924-3925]
[From the U.S. Government Publishing Office, www.gpo.gov]




        SOMETHING WE CAN ALL AGREE ON: OUR TAX SYSTEM NEEDS HELP

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Texas (Mr. Burgess) is recognized for 5 minutes.
  Mr. BURGESS. Mr. Speaker, it's springtime in Washington. We're all 
anxiously awaiting the start of the spring baseball season, cherry 
blossoms, and of course April 15 when we all face the deadline for 
filing our Federal income tax.
  Now questions are often asked, paper or plastic, regular or decaf, 
conservative or liberal. Americans don't always agree and don't always 
see eye to eye. But there is one thing which a majority of us do agree 
on and agree on hands down, that our Federal tax system needs serious 
help. According to a 2007 Tax Foundation Study, 78 percent of Americans 
think the tax system needs a major overhaul.
  Everyone knows the problem. Each year Americans dedicate billions of 
hours and billions of dollars complying with a very complex Tax Code. 
In fact, in 2005, the average taxpayer paid almost $1,900 per household 
in compliance costs. That means a taxpayer must work 6 days each year 
just to pay for the cost of preparing his or her Federal taxes for that 
year.
  Time is precious. Time is money. Time is fleeting. Time is precious, 
and we never have enough for raising our families. Time is money, and 
valuable resources are lost that could be spent on productive 
activities such as growing the economy and creating jobs. Time is 
fleeting. And we can never reclaim those hours that we have spent 
complying with our very complex Tax Code.
  We all complain about paying taxes. We all complain about navigating 
the complex code. And the fact is, if the system was fair and simple, 
it would be a lot easier to follow and a lot easier to swallow. 
Americans don't mind paying for roads, for a strong defense, or even 
for health care for your grandmother.
  The fact is, right now, we have a situation where two families can be 
living side by side, earn exactly identical incomes and face a very 
different tax liability on April 15. The Smith family makes the same 
amount as the Jones family, and they're forced to pay a higher share of 
the tax burden.
  The Declaration of Independence states that all men are created 
equal. Maybe it also should say all taxpayers should be created equal, 
and it should apply to the tax burden.
  Changes could be made within our existing system to improve it in the 
short term. Full expensing of business capital, permanently repealing 
the estate tax, abolishing the alternative minimum tax are a few of the 
possibilities. But fundamental tax reform would pay larger dividends. 
Just think of the jobs and economic growth that resulted when President 
Ronald Reagan cut the code in half back in 1986. Let's apply some of 
that same common sense that President Reagan used back in 1986 to 
streamlining today's unruly code in the 21st century.
  Simplicity and fairness demand that we replace our current system 
with a single rate system that taxes income only one time. Even the 
National Taxpayer Advocate, Nina Olsen, recommended that lawmakers 
simplify the tax code. That was one of her recommendations in the 2007 
annual report to Congress.
  A faster, a flatter, a fairer tax structure would work and it's 
pretty simple. Tax returns could be done on a single page, maybe even 
on a postcard. It could be accomplished in just a few steps.
  Time me now. Multiply your income by a fixed percentage, subtract a 
standard deduction, and the process is over. Fourteen seconds. Gone 
will be the stressful hours figuring out whether your military service 
or your marital status will adversely affect your return. No more 
headaches trying to determine where the estimated tax payments go. Tax 
prep fees might be money spent on, I don't know, something more 
rewarding. Maybe a vacation, maybe a personal day off, maybe even 
creating a new job.
  A single tax rate structure would eliminate taxes on capital gains, 
taxes

[[Page 3925]]

and dividends and taxes on savings because again, remember, we're going 
to tax income only one time. Businesses could expand and create jobs. 
Personal savings would increase.
  How many times we hear it said over and over again, Americans don't 
save enough money. Americans don't save enough money because when they 
put some of their hard-earned money into savings, half of the interest 
earned goes away to Federal income tax. It's taxed as ordinary income. 
Where's the incentive in that? We ought to incent savings in this 
country, not punish it, not grind the saver into the dust when, in 
reality, if we increase savings in this country we might not face some 
of the problems that we face today.
  Without the heavy corporate income tax which is currently the second 
highest in the industrialized world; let me say that again, the second 
highest in the industrialized world, companies would have less 
incentive to move their headquarters out of the United States and, more 
importantly, less incentive to offshore their earnings.
  Recent polling by American Solutions show that 80 percent of 
Americans favor an optional one page tax return with one rate. After 
all, who could complain about making something easier, especially a 
process that comes at a high cost.
  Former Speaker Gingrich said in this body over and over again, real 
change requires real change. Americans agree the Tax Code is unfair and 
should go. Let's take a cue and translate this agreement into real 
change. After all, fundamental tax reform is a worthwhile goal, and 
this Congress, this Congress should take it up and pursue it for the 
benefit of the American people.

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