Friday January 30, 2009
Tax Code Termination Act
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See also: The U.S. Tax Code is a complicated, lengthy set of rules that have become increasingly difficult for the average taxpayer to navigate. It is past time to terminate the present tax code and replace it with tax laws that make more sense and treat Americans fairly. I joined with Georgia Senator Johnny Isakson as an original co-sponsor of the Tax Code Termination Act (S. 747) in March 2007. I also co-sponsored the same legislation in the 109th Congres. The measure has been sent to the Senate Finance Committee, on which I serve, for further action.
The bill would set us on a path that would terminate the current tax code on December 31, 2010. It would create a commission that would recommend workable reform options. The commission would be made up of individuals from the executive and legislative branch and from the private sector. Specifically, the commission would be required to:
- Review the current tax code with respect to its impact on the economy, families and the workforce, its compliance costs to taxpayers, small businesses and corporations, and the Internal Revenue Service’s ability to administer the current code.
- Decide whether the income tax should be replaced with (but not limited to) a flat tax or a national sales tax.
- Determine if tax systems imposed in other countries could provide more efficient and fair methods of taxation.
- Identify the transition costs associated with any changes to the present federal tax code.
Since the bill gives us a few years to come up with a reform plan, we have an opportunity to create a tax system that doesn't penalize taxpayers unfairly. The bill would then require Congress to approve the new code in its final form no later than July 4, 2010. If a new system is not in place by that date, Congress would be required to vote to reauthorize the current tax code.
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