44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

REQUESTING THE CONGRESS OF THE UNITED STATES TO REPLACE THE CURRENT INCOME TAX SYSTEM WITH A SINGLE RATE TAX SYSTEM.

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

WHEREAS, the provisions of the current Internal Revenue Code discourage saving, investment, economic growth and job creation, which are vital to a healthy economy; and

WHEREAS, the provisions of the current Internal Revenue Code are 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 five billion four hundred million man hours and two hundred twenty-five billion dollars ($225,000,000,000) each year to comply with the Internal Revenue 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 two hundred billion dollars ($200,000,000,000) a year in compliance costs;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the congress of the United States be called upon to replace the current income tax system with a single rate tax system with a generous personal exemption, such as a flat tax; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the president of the United States, the vice president of the United States, the speaker of the United States house of representatives, the majority leader of the United States senate, the minority leader of the United States house of representatives, the minority leader of the United States senate, the chairmen and ranking minority members of the finance committee of the United States senate and the ways and means committee of the United States house of representatives, and each member of the New Mexico congressional delegation.