Should We Scrap the System ...

Congress shall have the power to lay and collect taxes . . . .” How, from these 10 simple words in our Constitution, did we arrive at today’s confusing, complicated and contradictory income tax code with its hundreds of sections, 6,439 pages of regulations, 2,000 pages of law and 480 tax forms?

The tax code is indefensible. The average American family today pays more in taxes than it spends on food, clothing and shelter combined. The Internal Revenue Service is twice as large as the CIA and five times the size of the FBI. In other words, we spend more time and resources harassing taxpayers than we do tracking down criminals.

Even those who call themselves tax experts can’t figure out the current code. Last November, Money magazine gave 45 accountants nationwide a financial profile of a fictional family and asked them to prepare a hypothetical tax return. Not only did each accountant come up with a different answer, but the computed tax liability ranged from $36,322 to $94,438--a staggering 160% variance.

Even worse, Americans each year devote 5.4 billion hours to comply with the tax code, more time than it takes to produce every car, truck and van made in the United States.

The current code is a monument to waste. It is complex and unfair; it inhibits saving, investment and job creation; it imposes a heavy burden on families; it undermines the democratic process. There is no quick fix. It cannot be repaired with tinkering or fine-tuning. The income tax code must be torn out by its roots.

That’s why we are participating in the “Scrap the Code Tour,” a national campaign to take the tax reform debate directly to the American people. Our first three stops will be Columbus, Ohio, on Friday, Atlanta on Oct. 17 and Chicago on Oct. 18.

We hope to unite Americans behind a drive to abolish the current tax code and replace it with a system that is simple, fair and honest. In each city, we will debate the current tax code and the merits of the tax reform proposals we advocate--the Armey flat tax and the Schaefer-Tauzin national sales tax. Either of these is better, simpler and more fair than the current system.

Any new tax system must be governed by the following three principles:

* It should have only one rate.

* All income should be taxed only once, without punishing or favoring one kind of income over another.

* Families must be allowed to provide for themselves before they’re forced to provide for the government.

Tax reform is the most important economic issue in America today. Recent polling data are a clear indication of the American people’s desire for tax reform: 58% believe that they pay too much in federal taxes; 69% believe that we need to fundamentally overhaul and simplify the federal tax code; 76% believe that loopholes allow people with the same income go pay significantly different amounts of taxes.

But we face enormous obstacles to comprehensive tax reform, most of which can be found in Washington. There are now more than 20,000 lobbyists whose sole mission is to extract little favors from Congress. These lobbyists and special interest groups oppose fundamental change because in many cases, they are getting rich off the current tax code.

If our efforts to “scrap the code” succeed, every American family wins. Every parent who spends hours filling out forms or works a second job in order to pay taxes would have more precious family time. And every company that now hires an army of tax lawyers would instead create jobs.

Truth, honesty and integrity do matter, and we need a tax system that reflects these values. It’s time to replace today’s complicated maze of politically motivated tax breaks with a simple, honest, fair system that treats everyone the same. When the American people know that everyone is treated the same, there will be less resentment against the government and against one another. A new tax code would be a big step toward ending class warfare in America.

What’s important now is to begin a national dialogue on tax reform. This debate isn’t about a flat tax versus a national sales tax but about fundamental tax reform versus the status quo.