House GOP proposes scrapping tax code by 2017

Rep. Bob Goodlatte (R-Va.) and dozens of other Republicans proposed legislation on Wednesday that would eliminate the current tax code by the end of 2017, and require a new, simpler code to be installed during that same year.

The Tax Code Termination Act, H.R. 352, is meant to save taxpayers billions of hours that are now spent on complying with a code that Goodlatte said is "impossibly complex."

"The tax code should work for American families and businesses — not against them," Goodlatte said Wednesday. "With American taxpayers spending more than 6.1 billion hours to prepare and file their tax returns, you know the current tax code is no longer working in a fair manner for our nation's citizens.

"Tax code complications leave families with little incentive to save and invest. We need to scrap this tax code and start from scratch."

His bill would repeal the entire code, except for sections dealing with Social Security and Medicare, by December 2017. It would require Congress to approve a new code by July 2017 that provides tax relief for everyone, promotes growth and job creation, and encourages savings and investment. Goodlatte argues that setting a date certain for the expiry of the current tax code will help prod Congress into creating a new one.

"Whichever tax system is adopted, the main goal should be to create a simpler, pro-growth tax code that works for American families and businesses," he said.

Goodlatte introduced a similar bill in the last Congress, although that bill had 53 co-sponsors, and his new version was introduced with 68 supporters, including one Democrat, Rep. Mike McIntyre (D-N.C.). Goodlatte noted that similar legislation was approved by the House in 1998 and again in 2000.

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