Goodlatte Proposes Tax Code Termination Act

by Mike Godfrey, Tax-News.com, Washington

17 February 2006

Earlier this month, Congressmen Bob Goodlatte (R-VA) and Collin Peterson (D-MN) introduced bipartisan legislation to abolish the Internal Revenue Code, the Tax Code Termination Act.

“The current tax system has spiraled out of control,” explained Rep. Goodlatte, who represents the Sixth Congressional District of Virginia.

He added: “With Americans devoting a total of 7.4 billion hours each year to comply with the current tax code, we need tax simplification.”

The proposed legislation, H.R. 4725, will repeal the entire tax code - except the portions that deal with Social Security and Medicare - by December 31, 2009, and calls on Congress to approve a new Federal tax system by July of the same year.

The legislation has already been passed twice by the House of Representatives, first in 1998 by a vote of 219-209 and then in 2000 by a vote of 229-187.

“Today’s tax code is unfair, discourages against savings and investment, and is impossibly complex,” continued Goodlatte. “The Tax Code Termination Act will force Congress to finally debate and address fundamental tax reform. Whichever simple tax system is adopted, the key ingredients should be: a low rate for all Americans; tax relief for working people; protection of the rights of taxpayers and reduction in tax collection abuses; promotion of savings and investment; and encouragement of economic growth and job creation.”

The Tax Code Termination Act has been referred to the House Committee on Ways and Means for further consideration.

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