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WASHINGTON, DC -- Picture an America where job growth triumphs over job loss and every man, woman, and child enjoys the benefits of health insurance; an America where students are guaranteed an equal educational opportunity and NO child is left behind; a place where IRS forms, federal taxes, and audits have been eliminated and revenue sharing allows for the fiscal and social renewal of untapped urban and rural markets; an America where elimination of the national debt will unleash financial security and economic prosperity for present and future generations. On February 3, 2004, the 90th anniversary of the 16th amendment allowing for the implementation of an income tax, Congressman Chaka Fattah (D-PA) will introduce legislation that will begin to frame this image of a better America.
The bill, "Transform America Transaction Fee of 2004," calls for the elimination of all federal taxes on individuals and corporations and replaces it with a fee on transactions. Eliminating federal taxes would stimulate the economy and spur job growth by allowing businesses to expand their operations and hire more employees.
The proposed transaction fee would be equivalent to current revenues generated by all federal taxes, while conceivably supplying additional income. The excess funds would serve to: eliminate the current national debt, provide universal health care, support an equitable public school finance system, and fund economic development in urban and rural areas.
Replacing the existing tax code with a simplified alternative is of critical importance to America's economic vitality. Currently, ours is the most complicated and convoluted tax code in the industrialized world. For example, the federal income tax section of the code has ballooned from a mere two pages to an incredible 45,662 pages. The complexity of the federal income tax alone cost Americans $200 billion, and 5 billion hours annually in compliance. The "Transform America Transaction Fee of 2004" will examine a more cost-effective approach towards tax code compliance.
In a December 2003 speech on the President's tax cuts, Speaker of the House Dennis Hastert said, "Our tax system is too complicated; it also hurts our nation's competitiveness. If our companies can't compete we lose jobs here in America. We must start a discussion of how we create the best tax system possible to meet the needs of the people in the 21st century." The "Transform America Transaction Fee of 2004," was developed in response to Speaker Hastert's appeal.
For a comprehensive list of the documents that helped frame this legislation visit the "Transform America Corner" at www.house.gov/fattah. |
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