Columns

Blaine's Bulletin: Americans Need a Tax Code that Rewards Hard-Work and Innovation

Each and every day, my offices receive letters, emails, and phone calls with questions and comments about government policies and agencies.

Each and every day, my offices receive letters, emails, and phone calls with questions and comments about government policies and agencies.

Since we are now in the month of April, calls, emails, and letters about our current tax system have increased as Tax Day and the deadline for Americans to file our income taxes with the Internal Revenue Service (IRS) approaches. One 3rd District constituent in particular wrote to me to voice his concerns and frustration about the complicated and incredibly long federal tax code.  At the end of his email, he asked me what I was doing about the mess of the tax code and what the House of Representatives can do to straighten this out.

The author of the email is right to be frustrated with the complexity, length, and overall burden of our tax code.  So, let me answer the question of what I am doing to ease the tax burden on individuals, families, and small businesses in America. One of the first bills I cosponsored this year was the Tax Code Termination Act. This bill would end our broken tax code by abolishing the current Internal Revenue Code by December 31, 2019. In addition, it would call on Congress to approve a new, simpler, less burdensome federal tax system by July of the same year.

Also, in March, the House of Representatives, with my support, passed the Fiscal Year 2016 budget.  The annual budget is a vision for the future, and I was very pleased that this year’s budget directs Congress to undertake comprehensive tax reform that would simplify the tax code and lower rates for individuals, families, and small businesses.

Beyond being supportive of reforming our current tax system, I have also championed other efforts related to taxes. In January, I became a cosponsor of a bill to permanently repeal the death tax. The death tax plays a large role in why family businesses and farms don’t survive from one generation to the next; many families are forced to liquidate the farms or businesses their relatives owned and operated in order to pay a tax that is levied on assets that have already been taxed extensively. It also influences planning decisions and is one reason that some businesses that can expand, choose not to do so. In addition, a small business survey found that more than 80 percent of small employers spend an average of 25,000 annually in attorney or consultant fees and life insurance premiums to avoid the death tax!  While we have made progress in recent years, such as increasing the amount exempt from the death tax and raising this exemption annually for inflation, there is more work to be done.  The last time the House of Representatives voted on a full repeal of the death tax was 2005, and it’s time to bring this legislation back to the floor.   

Instead of our current system, Americans need a tax system that rewards hard-work, entrepreneurship, investment and innovation. As your voice in Washington, I will continue to work on reform of the tax code and keeping the needs of Americans and small businesses in mind. Please feel free to write or call my office with any questions you may have, my staff is here to assist you.