Bill Description

This bill, originally introduced by Rep. Goodlatte (R-VA), attempts to stimulate real tax-reform by terminating the entire Internal Revenue Code after December 31, 2017 except for self-employment taxes, Federal Insurance Contributions Act (FICA) taxes, and railroad retirement taxes. To prevent Congress from kicking the can further down the road the act requires a two-third majority vote in both houses of Congress to change the determination date. In addition to the deadline, the bill states that any replacement federal tax system should be simple and fair and should apply a low rate to Americans, provides tax relief for working Americans, protects the rights of taxpayers, eliminates bias against savings and investment, promotes economic growth, and does not penalize marriage or families. The bill would require any new federal tax system to be approved by Congress in its final form by July 4, 2017.

Liberty for All's Position

Recognizing the constant lip-service towards "tax reform" routinely fails to amount to any reforms, this bill puts Congress on a clock. Under the Tax Code Termination Act, Congress would have to compromise and agree on a fairer, simpler, and more efficient tax system or almost all current taxes would expire. The bill provides for plenty of years for these negotiations to take place and contains a strong enunciation of principles any new system to abide by. As the fairest taxes are no taxes, Liberty For All supports measures to simplify the tax code and lower the tax burden on the everyday American.

Current Status

This bill was assigned to a congressional committee on January 23, 2013, which will consider it before possibly sending it on to the House or Senate as a whole.