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house Bill H.R. 27

Eliminating the Current Tax Code by the End of 2019

Argument in favor

The current tax code is a labyrinth of loopholes and penalties that is utterly incomprehensible. A new tax code based on lower rates will benefit taxpayers — and this bill makes the time to get it done.

BTSundra's Opinion
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04/04/2016
Finally, a bill to get rid of the incomprehensible labyrinth of the tax code! Let's go for a flat tax.
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Loraki's Opinion
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04/16/2016
This bill was passed from the House Ways and Means Committee to the House Rules Committee, and there it stopped. We need to "encourage" our Representatives to get moving on this bill, IMO. It has been languishing in the Rules Committee for over a year! The one thing that bothers me about it is that it doesn't specify what the actual tax rate would be if the bill were to be passed! Perhaps that's why it hasn't gotten anywhere. OR perhaps (and this is more likely, IMO) there just aren't enough Democrats who actually WANT to ease the tax burden on "We the People"! After all, taxing and spending are the Democrats' bread and butter! What do the rest of y'all think about it? H. R. 27 To terminate the Internal Revenue Code of 1986. IN THE HOUSE OF REPRESENTATIVES Mr. Goodlatte (for himself, Mr. Marino, Mr. Joyce, Mr. Walberg, Mr. Wilson of South Carolina, Mr. Flores, Mr. Poe of Texas, Mr. Pittenger, Mr. Franks of Arizona, Mr. Mulvaney, Mr. Yoho, Mr. Jones, Mr. Chabot, Mr. Duncan of Tennessee, Mr. Chaffetz, Mr. Roe of Tennessee, Mr. Long, Mr. Sensenbrenner, Mr. Bilirakis, Mr. Garrett, Mr. Griffith, Mr. Culberson, Mr. Amash, Mr. Schweikert, Mr. Amodei, Mr. Westmoreland, Mrs. Blackburn, Mr. Weber of Texas, Mr. Forbes, Mr. Newhouse, Mr. Gosar, and Mr. Woodall) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To terminate the Internal Revenue Code of 1986. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. Short title. This Act may be cited as the “Tax Code Termination Act”. SEC. 2. Termination of Internal Revenue Code of 1986. (a) In General.—No tax shall be imposed by the Internal Revenue Code of 1986— (1) for any taxable year beginning after December 31, 2019; and (2) in the case of any tax not imposed on the basis of a taxable year, on any taxable event or for any period after December 31, 2019. (b) Exception.—Subsection (a) shall not apply to taxes imposed by— (1) chapter 2 of such Code (relating to tax on self-employment income); (2) chapter 21 of such Code (relating to Federal Insurance Contributions Act); and (3) chapter 22 of such Code (relating to Railroad Retirement Tax Act). SEC. 3. New Federal tax system. (a) Structure.—The Congress hereby declares that any new Federal tax system should be a simple and fair system that— (1) applies a low rate to all Americans; (2) provides tax relief for working Americans; (3) protects the rights of taxpayers and reduces tax collection abuses; (4) eliminates the bias against savings and investment; (5) promotes economic growth and job creation; and (6) does not penalize marriage or families. (b) Timing of implementation.—In order to ensure an easy transition and effective implementation, the Congress hereby declares that any new Federal tax system should be approved by Congress in its final form no later than July 4, 2019. SEC. 4. Delay of termination dates. (a) Two-Thirds majority required.—In the House of Representatives or the Senate, a bill or joint resolution, amendment, or conference report carrying a change of the dates specified in section 2(a) of this Act may not be considered as passed or agreed to unless so determined by a vote of not less than two-thirds of the Members voting, a quorum being present. (b) Rules of the Senate and House.—The provisions of subsection (a) are enacted by the Congress as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such they shall be considered as part of the rules of each House, respectively, or of that House to which they specifically apply, and such rules shall supersede other rules only to the extent that they are inconsistent therewith. https://www.congress.gov/bill/114th-congress/house-bill/27/text
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Dominic's Opinion
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04/18/2016
The current tax code favors the wealthy individuals by allowing for loopholes and a lower capital gains tax
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Argument opposed

Bad things happen when Congress sets itself arbitrary deadlines, and if this bill were to pass and Congress couldn’t the new tax code passed in time, the uncertainty could be catastrophic for the economy.

Lee's Opinion
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04/08/2016
I don't trust (primarily republicans in) congress to actually come up with a new tax code. Their MO lately seems to be to destroy, not to create
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Steven's Opinion
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04/05/2016
How about we build a new house to live in BEFORE we burn down the one we live in now. Common sense is so rare these days it's almost a super power!
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Brandon's Opinion
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04/18/2016
A new tax code should be drafted and released for the public to decide on before congress is given a blank check to reorganize our economy
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      Committee on Rules
      Committee on Ways and Means
    IntroducedJanuary 6th, 2015

What is House Bill H.R. 27?

This bill would terminate the Internal Revenue Code of 1986 after December 31, 2019 — except for self-employment taxes, Federal Insurance Contributions Act (FICA) taxes, and railroad retirement taxes. 

The bill lays out a general framework for what the new federal tax system should look like, stressing that it should be a "simple and fair" system that:

  • Applies a low rate to all Americans;

  • Provides tax relief for working Americans;

  • Protects taxpayer rights and reduces tax collection abuses;

  • Eliminates bias against savings and investment;

  • Promotes economic growth and job creation;

  • Does not penalize marriage or families.

That said, the four page bill doesn't offer a detailed plan for what should come in place of the current tax code. 

Congress would be required to approve the final version of the new federal tax system by July 4, 2019. If passed, a two-thirds majority vote in Congress would be required to change the December 2019 termination date for the tax code.

Impact

Taxpayers, the Internal Revenue Service (IRS), Congress.

Cost of House Bill H.R. 27

A CBO cost estimate is unavailable.

More Information

In-Depth: A version of this bill has been introduced into Congress many times over the past years, dating back at least as far as the Clinton administration. The most recent version, which would terminate the tax code in 2017, was introduced in the House in January 2013 and gained support from 122 cosponsors but failed to advance out of committee.


Of Note: According to the Standard Federal Tax Reporter — a compilation created by the legal publisher Commerce Clearing House (CCH) — the current federal tax code comprises 70,000 pages of statutes, regulations, and case-law.

The Tax Foundation estimated that in 2012 individuals and businesses spent more than 3.24 billion hours (which is 369,858 - if you were wondering) preparing and filing tax returns. The IRS’s National Taxpayer Advocate put the annual paperwork burden for federal taxes at over 6 billion hours in 2014, and the National Taxpayer Union converted this figure into $224 billion spent by taxpayers each year on tax compliance.

A study done by the Mercatus Center found that the U.S. had a tax-reporting compliance rate of 85.5 percent in 2012, amounting to $452 billion in unreported taxes. It also concluded that the number of changes to the tax code (more than one per day), created hidden compliance costs ranging between $215 billion and $987 billion per year.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user JD Hancock)

AKA

Tax Code Termination Act

Official Title

To terminate the Internal Revenue Code of 1986.

    Finally, a bill to get rid of the incomprehensible labyrinth of the tax code! Let's go for a flat tax.
    Like (17)
    Follow
    Share
    I don't trust (primarily republicans in) congress to actually come up with a new tax code. Their MO lately seems to be to destroy, not to create
    Like (28)
    Follow
    Share
    How about we build a new house to live in BEFORE we burn down the one we live in now. Common sense is so rare these days it's almost a super power!
    Like (19)
    Follow
    Share
    A new tax code should be drafted and released for the public to decide on before congress is given a blank check to reorganize our economy
    Like (15)
    Follow
    Share
    This bill was passed from the House Ways and Means Committee to the House Rules Committee, and there it stopped. We need to "encourage" our Representatives to get moving on this bill, IMO. It has been languishing in the Rules Committee for over a year! The one thing that bothers me about it is that it doesn't specify what the actual tax rate would be if the bill were to be passed! Perhaps that's why it hasn't gotten anywhere. OR perhaps (and this is more likely, IMO) there just aren't enough Democrats who actually WANT to ease the tax burden on "We the People"! After all, taxing and spending are the Democrats' bread and butter! What do the rest of y'all think about it? H. R. 27 To terminate the Internal Revenue Code of 1986. IN THE HOUSE OF REPRESENTATIVES Mr. Goodlatte (for himself, Mr. Marino, Mr. Joyce, Mr. Walberg, Mr. Wilson of South Carolina, Mr. Flores, Mr. Poe of Texas, Mr. Pittenger, Mr. Franks of Arizona, Mr. Mulvaney, Mr. Yoho, Mr. Jones, Mr. Chabot, Mr. Duncan of Tennessee, Mr. Chaffetz, Mr. Roe of Tennessee, Mr. Long, Mr. Sensenbrenner, Mr. Bilirakis, Mr. Garrett, Mr. Griffith, Mr. Culberson, Mr. Amash, Mr. Schweikert, Mr. Amodei, Mr. Westmoreland, Mrs. Blackburn, Mr. Weber of Texas, Mr. Forbes, Mr. Newhouse, Mr. Gosar, and Mr. Woodall) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To terminate the Internal Revenue Code of 1986. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. Short title. This Act may be cited as the “Tax Code Termination Act”. SEC. 2. Termination of Internal Revenue Code of 1986. (a) In General.—No tax shall be imposed by the Internal Revenue Code of 1986— (1) for any taxable year beginning after December 31, 2019; and (2) in the case of any tax not imposed on the basis of a taxable year, on any taxable event or for any period after December 31, 2019. (b) Exception.—Subsection (a) shall not apply to taxes imposed by— (1) chapter 2 of such Code (relating to tax on self-employment income); (2) chapter 21 of such Code (relating to Federal Insurance Contributions Act); and (3) chapter 22 of such Code (relating to Railroad Retirement Tax Act). SEC. 3. New Federal tax system. (a) Structure.—The Congress hereby declares that any new Federal tax system should be a simple and fair system that— (1) applies a low rate to all Americans; (2) provides tax relief for working Americans; (3) protects the rights of taxpayers and reduces tax collection abuses; (4) eliminates the bias against savings and investment; (5) promotes economic growth and job creation; and (6) does not penalize marriage or families. (b) Timing of implementation.—In order to ensure an easy transition and effective implementation, the Congress hereby declares that any new Federal tax system should be approved by Congress in its final form no later than July 4, 2019. SEC. 4. Delay of termination dates. (a) Two-Thirds majority required.—In the House of Representatives or the Senate, a bill or joint resolution, amendment, or conference report carrying a change of the dates specified in section 2(a) of this Act may not be considered as passed or agreed to unless so determined by a vote of not less than two-thirds of the Members voting, a quorum being present. (b) Rules of the Senate and House.—The provisions of subsection (a) are enacted by the Congress as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such they shall be considered as part of the rules of each House, respectively, or of that House to which they specifically apply, and such rules shall supersede other rules only to the extent that they are inconsistent therewith. https://www.congress.gov/bill/114th-congress/house-bill/27/text
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    How about a balanced budget and paying down the debt by 2019?
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    Audit the Fed
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    Flat Tax. No more IRS penalties and under payments. It'll save billions and spread taxes out so everybody pays the same percentage. It makes sense that's why our federal government in its current form will never do it.
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    The current tax code favors the wealthy individuals by allowing for loopholes and a lower capital gains tax
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    We should eliminate federal income tax and move to a constitutional excise and tariff federal tax system. We'd need to move currently unconstitutional programs and agencies back to the states (where warranted) and let the states tax their citizenry for any of these, now localized, programs and agencies wanted by those same citizens. Any federal tax gap left would be supplemented by states, not individuals. This meets the criteria set forth in the bill. Let's get back to the constitutional form of government our founders envisioned.
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    The current tax code punishes success and responsibility in the middle. Those in the very top and very bottom of the "income" scale do not currently pay their "fair share". In general, I agree with the stated goals regarding tax "fairness" listed in this bill, however am afraid of the reality once written up by a Congress that seems more beholden to donors than to voters or taxpayers.
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    Yes lower rates help people keep more of their own money which is what most people need right now.
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    I'm all for revising the tax code, but who are we kidding? Congress can't figure out how to tie its shoes, there is no way the dysfunctional & gridlocked can agree on tax code revisions. So put your fantasy life on the shelf until there are some gown-ups in the room. It ain't now and I don't see a future in which serving the citizens of the US is a priority! At least for the US Congress--note the current unwillingness to confirm a justice to the Supreme Court!
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    Lol! This congress can't even pass a budget & now they think they can revise the tax code?? Cut the loopholes out, end corporate welfare and then we can talk about the tax code. Besides, this is entirely too close to the end of term for many of these people. The American people deserve a say and therefore this should be left to the next congress in January 2017.
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    Simplicity>Complexity
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    Something needs to be done to make our tax system simple enough for every American to understand instead of having a degree to decipher it. It's almost criminal that the system that just about everyone pays into is so convoluted.
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    Current tax is cumbersome and overwhelming. Nobody can understand it, not even tax professionals.
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    Let's make sure the Panama incident doesn't happen and the rich finally pay their share
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    National sales tax of 20-25%. No annual tax forms, no threat of politically-based IRS audits, no stolen refunds.
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    Yeah and end the fed too
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