IV
105TH CONGRESS
1ST SESSION
H. RES. 111
Expressing the sense of the House of Representatives that the income tax
should be eliminated and replaced with a national sales tax.
IN THE HOUSE OF REPRESENTATIVES
APRIL 10, 1997
Mr. HEFLEY submitted the following resolution; which was referred to the
Committee on Ways and Means, and in addition to the Committee on the
Judiciary, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
RESOLUTION
Expressing the sense of the House of Representatives that
the income tax should be eliminated and replaced with
a national sales tax.
Whereas the savings level in the United States has steadily
declined over the past 25 years, and lagged behind our
industrialized trading partners;
Whereas our economy cannot achieve strong, sustained
growth without adequate levels of savings to fuel produc-
tive activity;
Whereas the income tax, the accompanying capital gains tax,
and the estate and gift tax discourage savings and invest-
ment;
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Whereas the methods necessary to enforce the income tax in-
fringe on the privacy of our citizens and divert an esti-
mated $157 billion of taxpayer resources to comply with
its rules and regulations;
Whereas the Internal Revenue Service estimates that each
year it fails to collect 17 per centum, or $127 billion, of
the income tax owed to the Federal Government;
Whereas the income tax system employs a withholding mech-
anism that limits the transparency of Federal taxes;
Whereas the most effective tax system is one that promotes
savings, fairness, simplicity, privacy, border adjustability,
and transparency;
Whereas it is estimated that the replacement of the income
tax system with a national sales tax would cause our sav-
ings rate to substantially increase;
Whereas the national sales tax would achieve fairness by em-
ploying a single tax rate, taxing the underground econ-
omy, and closing loopholes and deductions;
Whereas the national sales tax would achieve simplicity by
eliminating recordkeeping for most taxpayers and greatly
reducing the number of collection points;
Whereas the national sales tax would be the least intrusive
tax system because most taxpayers would not be required
to file returns or face audits from the Internal Revenue
Service;
Whereas the national sales tax is border adjustable and would
place United States exporting on a level playing field with
our foreign competitors;
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Whereas a national sales tax is a transparent tax system that
would raise Americans’ awareness of the cost of the Fed-
eral Government; and
Whereas a national sales tax would best achieve the goals of
an effective tax system: Now, therefore, be it
Resolved, That it is the sense of the House of Rep-
resentatives that—
(1) the income tax system, both personal and
corporate, the estate and gift tax, and the accom-
panying capital gains tax be replaced with a broad-
based, single-rate national sales tax on goods and
services;
(2) the national sales tax rate be set at a level
that raises an equivalent level of revenue as the in-
come taxes replaced;
(3) the Federal Government work with the
States to develop a State-based system to administer
the national sales tax and that States be adequately
compensated for their efforts; and
(4) the Congress and States work together in
an effort to repeal the sixteenth amendment.
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