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200 IRET Congressional Advisory 1 (2006)

handle is hein.taxfoundation/iretcgadv0197 and id is 1 raw text is: INSTITUTE FOR RESEARCH ON THE ECONOMICS OF TAXATION
IRET is a non-profit 501 (c)(3) economic policy research and educational organization devoted to informing
the public about policies that will promote growth and efficient operation of the market economy.
Advisory No. 200
Exploring the Effects of a
Flat Federal Income Tax
For the District of Columbia
Statement of Stephen J. Entin
President & Executive Director
Institute for Research on the Economics of Taxation
to the
Senate Committee on Appropriations
Subcommittee on the District of Columbia
Hearing on
The Potential Effects of a Flat Federal Income Tax
in the District of Columbia
March 8, 2006
Mr. Chairman and Members of the Subcommittee:
Thank you for the opportunity to testify on the economic advantages of fundamental tax
reform. The Subcommittee is to be commended for exploring the gains that reform could bring
to workers and savers at all income levels, and in all corners of the nation.
Fundamental tax reform is about creating a tax system that is simpler and more conducive to
economic growth than the current income tax. Simplicity alone is not enough. For example -
Line one: Put down your income. Line two: Send it in. - is as simple a system as one can get,
but it is not conducive to economic growth. Economic growth means defining income correctly
to get the tax base right, and taxing it in a uniform, non-distorting manner.

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