Paul Coverdell: “today I rise to offer a tax reform package to provide greater tax fairness and to protect citizens from retroactive…”

“today I rise to offer a tax reform package to provide greater tax fairness and to protect citizens from retroactive taxation. This package includes three initiatives: a constitutional amendment called the retroactive tax ban amendment, a bill to establish a new budget point of order against retroactive taxation, and a proposed Senate Rule change. The first, the retroactive tax ban amendment, is a constitutional amendment to prevent the Federal Government from imposing any tax increase retroactively. The amendment states simply ``No Federal tax shall be imposed for the period before the date of enactment.'' We have heard directly from the taxpayers, and looking backward for extra taxes is unacceptable. It is not a fair way to deal with taxpayers. In addition, I am introducing a bill that would create a point of order under the Budget Act against retroactive tax rate increases. Because amending the Constitution can be a very long prospect--just look at the decades-long effort on behalf of a balanced budget amendment--I believe this legislation is necessary to provide needed protection for American families from the destabilizing effects of retroactive taxation. Finally, I am proposing a Senate Rule change making it out of order for the Senate to consider retroactive tax rate increases.”