US Lawmaker Wants To Terminate Tax Code

by Mike Godfrey, Tax-News.com, Washington

18 April 2008

As US taxpayers struggled to beat the 15th April tax filing deadline, US Representative Bob Goodlatte took the opportunity to raise awareness of his initiative to radically simplify the US tax code.

Goodlatte's Tax Code Termination Act, introduced at the start of the 110th Congress, would repeal the entire tax code, except portions that deal with Social Security and Medicare by 31st December, 2010, and calls on Congress to approve a new Federal tax system by July of the same year.

"I think we can all agree that the current tax system has spiraled out of control,” Goodlatte stated on the eve of the tax filing deadline.

“With American taxpayers and businesses devoting a total of 6.6 billion hours each year to comply with the current tax code, we need tax simplification," he argued.

Goodlatte pointed to the 2006 Annual Report to Congress by the National Taxpayer Advocate - an independent organization within the Internal Revenue Service (IRS) which assists taxpayers who are experiencing problems with the IRS - which listed “the complexity of the Internal Revenue Code” as the most serious problem facing American taxpayers.

Goodlatte's 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.

In the current Congress, the Virginian Republican has been joined by nearly 100 members, both Republicans and Democrats, who have cosponsored his legislation.

While such a radical measure is unlikely to actually become law, Goodlatte argues that the legislation takes an important first step along the road to tax reform by forcing Congress to at least consider the issue.

There are a number of possibilities to replace the current tax code, Goodlatte believes, such as the so-called 'fair tax,' or a flat income tax.

“Today’s tax code is unfair, discourages 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 simpler and fairer 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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