Senators Disappointed by Clinton Failure to Address Tax Reform

In a January 21, 1998 letter, six senators expressed disappointment that President Clinton did not intend to make comprehensive tax reform a priority in his State of the Union address. According to the senators, targeted tax cuts, incentives, and credits only increase the burden on taxpayers by making the code more complex and tax compliance more difficult. For that reason, they say, the current tax system should be replaced with "a new, simple and fair system that applies a single, low rate to all taxpaying Americans and eliminates the double taxation on savings and investment."

The senators who signed the letter were Richard C. Shelby, R- Ala.; Conrad R. Burns, R-Mont.; Rod Grams, R-Minn.; Larry E. Craig, R-Idaho; Richard G. Lugar, R-Ind.; and Jeff Sessions, R-Ala.

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January 21, 1998

Dear Mr. President:

[1] The tax burden shouldered by the American family is higher than ever, while at the same time the tax code continues to become more and more complex. Targeted tax cuts, tax incentives, tax credits and the like do little to relieve the burden of tax compliance for most Americans. On the contrary, its acutally adds to the burden by increasing the complexity of the tax code. According to data provided by the Internal Revenue Service, it cost the average taxpayer $8.67 just to pay $100 in taxes in 1996. This is commensurate with an extra 8.7 percent tax burden on each American.

[2] Mr. President, we feel very strongly that piecemeal reforms simply cannot effectively address the problems that plague the current tax system. Therefore, we favor replacing the tax code with a new, simple, and fair system that applies a single, low rate to all taxpaying Americans, and eliminates the double taxation on savings and investment.

[3] Given the importance of comprehensive tax reform to the American people, we are disappointed by reports that you will not make the issue a priority in your State of the Union addres. We hope that you will come to recognize the signficiance of this issue and support our efforts to overhaul the tax system.

                                   Sincerely,

Richard C. Shelby                  Larry E. Craig

Conrad Burns                       Richard G. Lugar

Rod Grams                          Jeff Sessions

                        United States Senate