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Fixing Our Outdated Tax System
Posted by Randy | June 07, 2011

The current American tax system was developed nearly a century ago at a time when the economy was largely based on agriculture, manufacturing, and local commerce.  With the onset of the information technology age, American businesses, families, and organizations have changed while the tax code has remained the same.  As a result, the American tax system has grown increasingly inefficient, outdated, unfair, and complex.

As of 2009, the U.S. tax code was 67,204 pages long with a reported 1,638 different tax forms.  The IRS estimates that a taxpayer needs about 37 hours to prepare the basic tax form, which is almost an entire work week.

At a time when unemployment has steadily hovered around 9%, I believe a common sense tax reform is necessary to eliminate the costs and burdens of the system while creating more job and business development.

Some measures I am taking to fix our outdated tax system include:

·         Cosponsoring the Tax Code Termination Act (H.R. 462), which would replace the old tax system no later than July 4, 2015.  This new system would seek to apply a low rate to all Americans, provide tax relief for working Americans, protect the rights of taxpayers and reduce tax collection abuses, eliminate the bias against savings and investment, promote economic growth and job creation, and get rid of penalties facing those married or with children;
·         Cosponsoring the Freedom Flat Tax Act (H.R. 1040), which creates an optional flat tax, allowing an individual or businessperson to opt out of the current tax system for a flat tax of 19% for the first two years and 17% thereafter;
·         Cosponsoring the Taxpayer Receipt Act (H.R. 1527), which would give each taxpayer who files an income tax return a receipt from the IRS that includes how much of their tax dollars are used for key categories, such as the interest on the national debt, Social Security, Medicare, Medicaid, national defense, veterans’ benefits, environmental protection, and foreign aid; and,
·         Cosponsoring the Death Tax Repeal Act (H.R. 177), which would permanently repeal the federal death tax and allow small business investment to rise 3% annually.

Weigh in.  Do you support these efforts that will create jobs and lessen the complexity of the American tax system?
Comments
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  • Thomas griswold commented on 6/8/2011
    Tax reform is certainly way overdue, however, setting a goal for reform by 2015 is a ridiculous timeline...4 years??? If its really going to take this long then obviously some interim action is appropriate here, like immediately ending the billions in oil and gas industry subsidies, subsidies the industry themselves testified only 5 years ago they did not need. Why are these being sustained when oil and gas industry profits remain at record highs and domestic production is also at highs? I can see no rational argument in the current economic climate for eliminating the death tax either, nor attempts to lower taxes or to make permanent tax cuts for the super wealthy when those cuts contributed nothing toward economic growth, a fact widely acknowledged. Tax rates are presently at historic lows, and this has contributed immensely to the dramatic rise in national debt, a staggering 7.5 Trillion dollars under the Bush adminstration alone. Yes, we need reform, but surely, surely this can be accomplished in less than 4 years!!!
  • Douglas Absher commented on 6/8/2011
    Congressman Forbes, I applaud your support to improve/correct our outdated and bias federal tax code. I can support H.R.462, 1527 & 177 with you, I do not support H.R 1040 as proposed. I am more a supporter of Ron Paul's position that the Federal Government can exist at it's Constitutional size without have a federal individual income tax. To get to this objective a seed must be planted in a conservative Bill that will allow/force the government to move to continuing lower personal income tax levels. Similiar to many progressive Bills this could be achived over 10-20 years and thus - I do not support H.R. 1040 with an irrevocable election clause or the proposed tax rates. There should be a single tax rate of no higher than 10% (which would include income, FICA, and Medicare) - I could support that or something that moves to that level.
  • William Bransford commented on 6/8/2011
    I strongly recommend you consider simply sponsoring adoption of the Fair Tax proposed by Rep. Linder of Georgia and others. It is a well developed, rational and effective to the hodge-podge of tax measures we have in place today. WE WILL NOT NEED A VALUE ADDED TAX, A CAPITAL GAINS TAX, A PERSONAL INCOME TAX, AN ESTATE TAX OR A CORPORATE INCOME TAX IF WE ADOPT THE FAIR TAX PROPOSAL. The only issue will be what to do with the unemployed tax lawyers and the free time that taxpayers have in April of every year.
  • Thomas Griswold commented on 6/9/2011
    To Dan: I don't have a problem with disclosure of financial information to my government, but I certainly do have an issue disclosing information, like credit report summaries to private employers, who have already invaded every possible facet of American life. On the other hand you do make a point about government intrusion, especially the relentless assault on privacy that came from the Bush administration.
  • Thomas Griswold commented on 6/9/2011
    Step 1...return tax rates to where they were under President Clinton and did the best for the country...as suggested...yet AGAIN...by former Federal Reserve chairman Alan Greenspan...there is nobody else in congress with more credibility on this issue. So the choice seems simple...act wisely, or try to confuse the issue for political advantage with no science behind the proposal. Isn't it obvious what is happening here?
  • Pat Brown commented on 6/9/2011
    Very simple. I favor a national sales tax and closing the IRS.
  • Duke Brown commented on 6/9/2011
    Go for the simplist tax structure. A national sales tax. Eliminate the IRS.
  • Ron Ogletree,Sr. commented on 6/9/2011
    I had to retire at 58 years old due to severe back problems. I don't mind paying taxes. never had any objection. I spent nearly a year in Vietnam and worked for (Allied-Signal) , now Honeywell. I paid taxes there for 31 years. The American people deserve to be treated like with a little more respect. Young couples can't afford to by a home now, because Fannie Mae and Freddie Mack were grossly misshandled and granted loans to couples on wildly inflated prices. Democrats and some on the other side of the aisle looked the other way and when the collapse started they lot their jobs. I know of a person with a Masters' and he works at Taco Bell as a food preperation. He lost his home ,his family, car and every thing but some clothing. He now lives in a on room apartment where roaches live better than him. A flat tax and rewarding small businesses with fair taxes, this country will get back on our feet again. I applaud your efforts and hope this country's executive branch will remember this country was started by honest hard working men and women. Sincerely, Ron Ogletree,Sr.
  • Gregg Williams commented on 6/10/2011
    Congressman Forbes, I embrace the idea of tax reform but would really rather see the Fair Tax, HR 25, put into law. A flat tax really only taxes those that pay their taxes and misses all the illegal immigrants and shadow economy that exits in our country. A flat tax also penalizes those that are just trying to save. If people were to pay their taxes up front, there would be no tax evaders like Rep. Rangel. Sincerely, Gregg Williams
  • Jim Disbrow commented on 6/10/2011
    A bigger issue is the tax subsidies that have been put together like a patchwork quilt over the last century. Perhaps first we should have a "National Vision" of where we (as a Nation) want to be in 20 years, then eliminate ALL taxation and tax subsidies (i.e., farm subsidies, fossil fuel subsidies, off-shore tax haven subsidies, cotton subsidies, corporate subsidies, advanced depreciation subsidies, tax credits, tax write-offs, etc.). Then we could rebuild them to support the "National Vision", rather than having subsidies and taxes that are contrary to the "National Vision", as we have now.
  • Russ Garzon commented on 6/12/2011
    Simpler is better. I encourage you to join with congressman Ron Paul and work towards elimination of the unconstitutional income tax. Fair taxes or flat taxes are nothing more than bait. Once passed, how long before congress starts raising the rates in their never-ending thirst for more revenue? Recall that social security taxes were originally foisted on the American people under the ruse that it was only going to be a 1% tax. Here we are in 2011, where many of us pay close to 40% of our income to the government. This is the sort of thing which our founding fathers would NEVER tolerate. Abolish the income tax, eliminate the Internal Robbery Service, and restore the Republic.
  • patty flemming commented on 6/13/2011
    A national sales tax has always seemed logical and fair to me. If you buy something you pay the tax. No hassles, no April 15th breakdowns, no late penalties, and NO IRS!!!! Let's not wait. Put it into effect NOW and see the money lost to people working under the radar flow in. They have to buy things to live and with a national sales tax they will finally be paying taxes too.
  • Mike fela commented on 3/20/2013
    There are certain things like opportunities to increase their earnings death tax eliminate the bias against savings and investment if we are now able to create some logical fair then it may be the easiest to control the tax problems like they are doing very well in this case htpp://www.dkpp.com.au/property-menu/property-tax-report/
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