“When Americans file their returns, they should do so under a code that does not discriminate against them based on their income, the type of car they drive, or whether they own a home.”
Only comprehensive reform can fix our broken tax system
The tax code's purpose is simply to fund the federal government—but we've turned it into a system loaded with preferences, deductions, credits, exemptions, and other loopholes that cater to special interests and fail to treat all taxpayers fairly. We've only made our tax system more complex through piecemeal efforts to fix it and tinkering around the edges.
If we are serious about solving these problems, we need to completely overhaul the tax code. Fundamental reform is the best option for a long-term fix. Until then, I'm committed to passing legislation that will lower the heavy burden taxpayers bear.
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America's current tax system is broken
- Each year, according to the IRS's own estimate, Americans spend approximately 6.4 billion hours preparing tax returns and have to wade through nearly 67,000 pages of federal tax rules.
- Tax compliance costs Americans $265 billion – yes, billion – each year, and these costs continue to rise.
- The tax code's purpose is to fund the federal government, but with a potentially endless list of credits, deductions, preferences, and exemptions, our tax code has become an instrument of social engineering that caters to special interests.
Our tax system treats Americans unfairly
- Our current tax system is a handicap on our nation's citizens, our businesses, and our economy.
- America is at a competitive disadvantage in the global economy because of our tax code. Nine Central and Eastern European countries have enacted simple tax codes with low, flat tax rates that have revived economies and attracted unprecedented foreign investment.
- Taxpayers are punished when they save or invest their money, because the federal government wants to tax that money not once, but twice.
Comprehensive tax reform is the best solution
- If we are serious about solving these problems, we need to completely overhaul the tax code.
- We've only made our tax system more complex through piecemeal efforts to fix it and tinkering around the edges.
- Fundamental reform is the best option for a long-term fix. Until then, I'm committed to passing legislation that will lower the heavy burden taxpayers bear.
I have helped launch a bipartisan "Cleanse the Code" coalition to move Congress toward fundamental reform
- Although members of the coalition may disagree about the best approach to tax reform, we all agree fundamental reform is imperative.
- We agree that reform should embody the principles of simplicity, fairness, and fiscal responsibility.
I believe a flat tax is the best solution
I'm an original cosponsor of S. 1040, the Tax Simplification Act of 2007.
- S. 1040 would replace the current tax code with a flat rate of 17 percent for individuals and businesses alike.
- It would eliminate special preferences, end the double taxation of savings and investment, and provide a generous exemption based on family size.
Low Tax Burdens Strengthen the Economy
- Special CRS report
- Tax Cuts and Economic Stimulus:
How Effective are the Alternatives?[PDF/74KB]
Fundamental reform is the best option for a long-term fix; however, until then, I'm committed to passing legislation that will lower the heavy burden taxpayers bear
One of the greatest problems facing Americans is over-taxation
- The average family pays as much in taxes as it does in food, clothing, and shelter combined.
- Even after the President's tax cuts in 2001 and 2003, this remains one of the most heavily taxed generations in American history.
- Taxpayers will have to work from January 1 until April 30 – four full months – before they will have earned enough money to pay this year's tax obligation.
Allowing taxpayers to keep more of their own hard-earned money is the best way to strengthen families, grow businesses, and grow the economy
- Lower tax rates have spurred the economy. As of December 2006, the U.S. economy has grown 58 consecutive months, the highest rate of growth since World War II.
- Since August 2003, more than 7.8 million jobs have been created, the unemployment rate is a low 4.5 percent, and real wages rose 2 percent in 2006.
- Taxpayers are experiencing real benefit from lower tax rates. Per capita, real after-tax income has risen over 10 percent – more than $3,000 – since 2000.
- Lowering tax rates has stimulated the economy, resulting in a surge of record-breaking tax revenues to the U.S. Treasury.
To maintain this record growth, we must make the President's tax cuts permanent
- Tax cuts have created an environment where the economy can grow and Americans can prosper.
- Allowing the tax cuts to expire will undo all these benefits.
- If we permit the tax cuts to expire, it will result in the largest tax increase in American history.
My Legislation
The Withholding Tax Relief Act
- Online resource
- Government Withholding Relief Coalition
I introduced this legislation, S.777, to repeal a new tax withholding provision that will harm every sector of the economy.
- Section 511 of the Tax Increase Prevention and Reconciliation Act (TIPRA) of 2005 will impose a sweeping new 3 percent tax withholding on all government payments, starting in 2011.
- This new tax withholding harms every sector of the economy, from health care and technology to building and transportation.
- This provision will be especially harmful for small businesses—the backbone of our economy.
The Tax Simplification Act
I am an original cosponsor of The Tax Simplification Act, S.1040, which will replace our broken tax code with a flat tax.
- S. 1040 would replace our arcane tax code with a flat tax rate of 17 percent for both individuals and businesses alike.
- This legislation would end double taxation of savings and investment and provide a generous exemption based on family size.
- The flat tax will restore simplicity and fairness to the tax code for all Americans.
- Floor statement:
- In Favor of a Flat Tax, April 18, 2007
| Video | Audio | Text | - Special CRS report:
- The Flat Tax
- Editorials:
- Terrible Tax Day Approaches - April 6, 2007
Slaying the Monster - December 7, 2006
The Invest in America Act
I am an original cosponsor of The Invest in America Act, S. 14, to reduce the tax burden being borne by American taxpayers.
- The Invest in America Act would help individuals by making income tax rates permanent, as well as permanently extending the child tax credit, marriage penalty relief, the tuition deduction, and many other important provisions.
- This legislation also helps small businesses and the economy by making the Research and Development (R&D) tax credit and the increased expensing limits permanent, and by permanently extending the tax rates on capital gains and dividends.
- This legislation will also permanently repeal the death tax and the Alternative Minimum Tax (AMT).
Tax Code Termination Act
I am cosponsoring the Tax Code Termination Act to force Congress's hand and make tax reform a reality.
- The Tax Code Termination Act terminates the tax code on December 31, 2010. It also creates a Commission tasked with reporting to Congress plausible tax reform options. If Congress doesn't act on the Commission's recommendations by July 4, 2010, Congress must vote to reauthorize the current tax code.
- The Commission must review the tax code's impact on the economy, families and the workforce, and compliance costs; decide if the current system should be replaced with a flat tax, national sales tax, or another system; and identify transition costs associated with any changes to the present federal tax code.
Additional tax relief legislation I support
- S. 170, the Telephone Excise Tax Repeal Act of 2007
- S. 374, the Art and Collectibles Capital Gains Tax Treatment Parity Act
- S. 561, the Adoption Tax Relief Guarantee Act
- S. 502, A bill to permanently extend reduced capital gains and dividends tax rates
- S. 156, the Permanent Internet Freedom Act of 2007