It will never happen.
Two months ago, Rep Bob Goodlatte (R, VA)
sponsored H.R. 352, the “Tax Code Termination Act.” Since then approximately 70
additional Representatives have jumped onboard.
What does the bill propose to do?
Starting in 2018, the bill would eliminate
individual, corporate, partnership and estate taxes. Payroll taxes and
self-employment taxes would survive.
Congress would have until July 4, 2017 to
propose and enact a new tax system to replace the current.
What is the purpose? Here is Representative
Goodlatte’s explanation:
It has become abundantly clear that the tax code is no
longer working in a fair manner for our nation’s citizens. Many Americans look
at the dim state of our economy, and the billions of their tax dollars that are
being given to private businesses and they want to know why they cannot keep
more of their hard earned tax dollars. The tax code Americans are forced to
comply with is unfair, discourages savings and investment, and is impossibly
complex. It has become too clear that the current code is broken beyond repair
and cannot be fixed, so we must start over.”
He is not so much proposing the permanent
abolition of the tax system as proposing a drop-dead date for its replacement.
Why?
Although
many questions remain about the best way to reform our tax system, I am certain
that if Congress is forced to address the issue we can create a tax code that
is simpler, fairer, and better for our economy that the one we are forced
to comply with today.”
Congress won’t reach a consensus on such a contentious
issue unless it is forced to do so.”
The bill is skeletal, and it does have an
odd provision requiring a future Congress to meet a two-thirds majority to
delay or repeal the bill.
Predictably, the very act of sponsorship
has pushed the usual political suspects into a jeremiad, prophesying the end of
the world as we know it.
Still, I can understand Rep Goodlatte’s
premise: without prodding, the sinecured political class will not reform the
tax system. Why would they? The tax code is just one more weapon they can and
do wield to augment and retain power.
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