The proposed legislation would terminate the tax code except for Social Security taxes and Railroad Retirement taxes on December 31, 2001. The fourth feature, eliminating the bias against savings and investment, suggests that the new tax system would be some type of consumption tax. A public opinion poll conducted by the Republican National Committee reportedly found that most voters oppose the Act.
Business groups appear divided.
Arguments for the Proposal. Proponents argue that the current tax code is vastly too complex and has placed a heavy burden on individuals and the economy. Hence they believe a drastic change to a new tax system is needed, and that sunsetting the Internal Revenue Code in the year 2001 will create a deadline compelling policymakers to adopt a new tax system based on the principles specified in the legislation. Among leading options that have been discussed are a national retail sales tax and a flat rate consumption tax. Arguments Against the Proposal.