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An Open Letter to the United States House of Representatives: Support the Taxpayer Choice Act
October 19, 2007
On behalf of the 362,000 members of the National Taxpayers Union (NTU), I write to endorse the Taxpayer Choice Act (H.R. 3818) and ask for your cosponsorship of this important legislation. While many pro-taxpayer bills have been introduced in the 110th Congress, our members strongly support H.R. 3818 because it takes a comprehensive approach to some of the most pressing tax concerns facing Americans today.
In addition to repealing the alternative minimum tax and making the 2003 capital gains and dividend tax relief permanent, the bill sets up a simplified alternative to the current individual income tax system. By using just two tax rates (10 and 25 percent) and eliminating tax preferences, the optional system outlined in H.R. 3818 promotes simplicity and transparency.
Indeed, it is NTU's opinion that this legislation largely meets the criteria laid out in the "Cleanse the Code" statement of principles released in December 2006 by a right-left coalition of citizen groups and think tanks. The statement listed "simplification, transparency, and certainty" as the first factor critical to reforming our confusing Tax Code. The Taxpayer Choice Act would turn this principle into reality.
The bill has also been crafted to keep distribution of existing tax burdens largely unchanged while bringing in revenue similar to the historical level of collections (when viewed as a share of the larger economy). While our members would support lower burdens and collections across the board, this neutrality should satisfy the doubts of lawmakers who claim to be concerned about tax reform "fairness."
NTU has long supported and continues to prefer single-rate proposals such as the "fair tax" (H.R. 25 and S. 1025) or a flat tax (H.R. 1040 and S. 1040). Nonetheless, the Taxpayer Choice Act would move America's tax system toward the goals we ultimately seek.
Because this signature bill represents a far-sighted example of tax legislation, roll call votes on H.R. 3818 will be heavily weighted in NTU's annual Rating of Congress.