Resolution in Favor of a Federal Flat Tax Exposed

The Resolution in Favor of a Federal Flat Tax is listed under ALEC's Tax and Fiscal Policy Task Force and was included in the 1996 Sourcebook of American State Legislation. According to ALEC.org, the Resolution was re-approved by the Board of Directors on January 29, 2013. (Accessed on 1/28/2016).

ALEC Resolution Text

Summary

The current federal income tax system is economically destructive and inconsistent with the principles of a free society. Most economists and accountants agree that the current code is needlessly complex, and discourages savings, investment, economic growth and job creation. This resolution calls upon the U.S. Congress to replace the current income tax system with a single rate tax system with a generous personal exemption, such as a flat tax, and ease the burden on all Americans and eliminate the bias against work, savings and investment.

Model Resolution

WHEREAS, the current federal income tax system is economically destructive and inconsistent with the principles of a free society; and

WHEREAS, the current code discourages savings, investment, economic growth and job creation which are vital to a healthy economy; and

WHEREAS, the current code is manipulated by special interest groups through the creation of tax preferences; and

WHEREAS, double taxation of income, such as is found in the capital gains tax and estate tax, discourages savings, investment, entrepreneurial spirit, and the ability to pass family businesses on to future generations, which stifles the American dream; and

WHEREAS, the current income tax system is complex, confusing and time consuming, forcing American individual and business taxpayers to spend 5.4 billion man hours and $225 billion each year to comply with the code; and

WHEREAS, replacing the current income tax system with a single rate tax system that taxes income only once, such as a flat tax, would be fair and simple and would treat all taxpayers equally; and

WHEREAS, a single rate tax system would eliminate the double taxation of savings and investment income, thus treating work and savings equally; and

WHEREAS, a single rate flat tax system would enhance economic growth by being neutral in its treatment of saving, investment and consumption - allowing people, not government, to choose how they use their time and spend their money; and

WHEREAS, a single rate flat tax system would be easy to comply with, saving individual and business taxpayers over $200 billion a year in compliance costs.

NOW THEREFORE BE IT {JOINTLY} RESOLVED, that the {legislative body/bodies} of the State of {insert state} respectfully call/s upon the Congress of the United States to replace the current income tax system with a single rate tax system with a generous personal exemption, such as a flat tax, to ease the tax burden on many Americans and eliminate the bias against work, savings and investment.

BE IT FURTHER RESOLVED, that copies of this Resolution be sent to the President of the United States, the Vice-President of the United States, the Speaker of the United States House of Representatives, the U.S. Senate Majority Leader, the U.S. Senate Minority Leader, the U.S. House Majority Leader, the U.S. House Minority Leader, the Chair and ranking minority member of the Senate Finance Committee, the Chair and ranking minority member of the House Committee on Ways and Means, and to each member of the {insert state} Congressional delegation.

ALEC's 1996 Sourcebook of American State Legislation