U.S. Rep. Charles Boustany (R-LA) convened a hearing on Wednesday that explored how tax reform can help create jobs, increase paychecks and expand opportunities.
The hearing was the first in a series that Boustany, the chairman of the House Ways and Means Subcommittee on Tax Policy, plans to convene on tax reform.
“As we focus on tax reform, we want to take a fresh look and consider all ideas and proposals.” Boustany said. “The Ways and Means Committee must weave the most pro-growth concepts and ideas into a bold plan that fundamentally and comprehensively reforms our tax system.”
U.S. Reps. Michael Burgess (R-TX), Rob Woodall (R-GA) and Devin Nunes (R-CA) advocated for transitioning from the current income-based tax system to a cash flow or consumption-based model in which taxes are based on money spent rather than money earned.
Burgess added that the Flat Tax Act, H.R. 1040, that he introduced would simplify the tax code and would give taxpayers choices.
“I want to help every American,” Burgess said. “We have made life so difficult for the average citizen with our tax code… (With the flat tax) you could fill out a simple return, and then everyone of the same income level would pay the same amount…. The other thing that’s different in the bill I’ve introduced, H.R. 1040, is that it’s voluntary. If you like your tax, you can keep your tax.”
Woodall added that the FairTax Act, H.R. 25, would provide economic mobility to families.
“Eighty percent of American families pay more in payroll taxes than they pay in income taxes,” Woodall said. “Yet, we seem obsessed with the income tax code. If you really want to help working families move up that ladder, you have to deal with the payroll tax code. The fair tax does that.”