Hearing of the House Ways an d Means Committee - Opening Statement of Rep. Boustany, Hearing on Fundamental Tax Reform Proposals

Hearing

"Today the Subcommittee will hold the first in a series of hearings to focus on fundamental tax reform. We are honored to have three of our esteemed colleagues join us today so we can learn about bills they have developed to take the tax system in a new direction, by moving away from income as the tax base and instead looking to cash-flow or consumption as a tax base that is more conducive to economic growth. These are important ideas, in which our colleagues have invested an enormous amount of time and energy. And it shows the seriousness of their commitment to the effort to develop a pro-growth tax system for the 21st century.

"It is abundantly clear that our current tax code is broken. We are saddled with a code that is littered with exclusions, deductions, and special rules. A code that has grown to more than 4 million words -- and that doesn't include all the forms, schedules, worksheets, and instructions that are required for Americans to comply with the law. The code is so complex that Americans devote billions of hours a year to tax compliance, and they also spend tens of billions of dollars a year on tax preparation software or professional services. Imagine if all that time and money could be put to more productive use instead, jump-starting our lackluster economy.

"As we focus on tax reform, we want to take a fresh look and consider all ideas and proposals -- including the three important proposals being presented today. Ultimately, the Ways and Means Committee must weave the most pro-growth concepts and ideas into a bold plan that fundamentally and comprehensively reforms our tax system. A tax reform plan that suitably marks this year's 30th anniversary of the last overhaul of the tax system.

"This hearing is just -- the beginning. The Subcommittee will continue to solicit and evaluate all ideas. We will be holding our next hearing on April 13th to examine Member bills that make fundamental reforms within the context of an income-based tax system.

"Thank you again to each of our witnesses for taking time from your busy schedules to be with us today. We look forward to hearing about your bold proposals."

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