Kucinich testifies for simplified tax code

[goodhue]

http://www.house.gov/apps/list/press/oh10_kucinich/092404taxtestimony.html
For Immediate Release
Thursday, September 23, 2004

Kucinich Testifies For Greater Tax Relief For Middle Class

Testifies Before House Subcommittee On Taxes To Call For Greater Tax Relief For Those Who Need It Most

Congressman Dennis J. Kucinich (D-OH) gave the following testimony before the House Ways and Means Subcommittee on Select Revenue Measures today:

“Thank you Chairman McCrery and Ranking Member McNulty for holding this important hearing. I would like to bring to your attention a proposal I introduced last year that will have a positive impact on millions of taxpayers.

“I think it is fair to say that all Members of Congress believe we need to strive for a fair, simple, and adequate tax system. We may disagree on how this is been accomplished, but we have the same goals.

“However, I think we can agree on the need for transparency. Transparency in the tax system is necessary to achieve fairness. Transparency permits the taxpayer to understand how fairness is arrived at in the tax code. A simplified tax code can provide this transparency, which in turn provides a sense of trust in the government.

“My hope is that this committee will seriously explore my proposal to create a $2000 Simplified Family Credit, a refundable tax credit that simplifies the tax code by consolidating the Earned Income tax Credit (EITC), Child Tax Credit, Additional Child Credit, and exemption for children into one streamlined Simplified Family Credit. This tax credit will simplify the tax code, provide greater transparency, provide extra work incentives, and provide a stimulus effect.

“Families should not have to struggle to understand the eligibility requirements for each of the various family tax breaks in current law. All families should follow the same set of rules.

“The Simplified Family Credit is structured to provide progressive tax benefits and a work incentive. The families with lower income will get more benefit, but they are also rewarded for work. The credit would be steeply phased in at the lowest income levels providing the incentive to work and a substantial benefit. As income rises a slow phase out would be necessary to ensure we maintain a progressive tax system.

“The cost of this proposal would fall in the range of $20 billion a year. Given our current deficit problems, I believe that Congress should only create the Simplified Family Tax Credit if it is paid for. In my legislation H.R. 3655, there are several options to pay for this proposal including rolling back parts of the tax cuts enacted in the last 3 years. Those tax cuts only added to the complexity of the tax code and removed any remaining transparency.

“Thank you for this opportunity to testify today.”

[phantom power]

1. the lack of transparency is too useful for politicians

If we ever actually simplified the tax code, then it would become too easy for voters to evaluate the impact of any proposed tax changes.

Under the current system, any politician can make pretty much any wild-ass claim about the impact of their proposed legislation. And it's nearly impossible to either prove or disprove their claim, for the simple reason that the tax laws are so damned complicated. Any arguments about the actual merits of a tax change immediately become bogged down in incomprehensible details, and so voters just end up voting their party line for lack of any better information.

[goodhue]

2. One might think a simplified tax credit would be popular

Amongst the people and the politicians.
Tax preparers and tax lawyers may not like it.

[phantom power]

3. it's advantageous for politicians to say they want it, but not to actually

have it happen. In this way, I think it's a bit like the Culture Wars, as discussed in "What's the Matter With Kansas". It's useful as a sop to voters, but then if they actually solved the problem, they couldn't use it anymore.

[GreenPartyVoter]

4. I always love to hear from Dennis. Thanks for posting this.

[goodhue]

6. no problem

[Kanary]

5. Dennis, himself, is transparent, and for that I have utmost

respect for him.

One thing about Dennis, is that his actions have ALWAYS matched his words. When he says this is what he is working for, one can be sure that's the case.

Dennis has too often paid a high price for his integrity to give up his own transparency.

Kanary

[eridani]

7. Kick for the night shift

Damn, but I love that man!