HJR 31 - ENDORSE FEDERAL FLAT INCOME TAX                                     
                                                                               
 REPRESENTATIVE JEANNETTE JAMES, sponsor of the Resolution, stated            
 the current federal Internal Revenue Code is characterized by                 
 loopholes, exceptions, exemptions, complicated schedules, and                 
 targeted tax breaks, which makes it difficult for the taxpayer to             
 calculate the tax obligation due.  Thus, there is a real need to              
 replace the current system with one that is fairer and simpler.               
                                                                               
 This Resolution calls for the United States Congress to enact                 
 legislation replacing the current IRS tax code with a fixed-rate              
 or "flat" tax.  This will create a tax system that is less                    
 difficult to comply with and tax all income once.  A "flat" tax               
 would also exclude from the definition of taxable income the                  
 earnings from personal and business savings, encouraging                      
 individuals and families to save and invest a portion of their                
 incomes.                                                                      
                                                                               
 REPRESENTATIVE KUBINA asked if this would exempt all savings from             
 taxation.  A scenario would be that people who earn millions each             
 year could place huge sums of money into personal savings and                 
 thus escape being taxed.                                                      
                                                                               
 REPRESENTATIVE JAMES said that it was the intent of the measure               
 to help the struggling and average income families who had                    
 scrimped and saved all year long and then be penalized by taxes.              
 The current system does not work.  She added that the "devil of               
 this Resolution is in the details," referring to the fact that                
 the millionaires and billionaires of this country would find ways             
 around this measure.                                                          
                                                                               
 REPRESENTATIVE KUBINA suggested that deleting lines 14-16 on page             
 1, would tighten up the language and intent of the Resolution.                
                                                                               
 REPRESENTATIVE JAMES supported the suggested change.                          
                                                                               
 REPRESENTATIVE DAVIS suggested amending HJR 39 by changing                    
 "would" on line 14, page 1 to "could".                                        
                                                                               
 REPRESENTATIVE JAMES said she would support any change that would             
 keep in tact where individuals would not have to pay a "penalty"              
 for savings.                                                                  
                                                                               
 REPRESENTATIVE KUBINA made a motion to delete lines 14-16.                    
                                                                               
 CHAIRMAN BARNES asked if there were any objections.  Hearing                  
 none, the motion passed.                                                      
                                                                               
 REPRESENTATIVE DAVIS asked what percent of Internal Revenue                   
 Service would be eliminated by this Resolution.                               
                                                                               
 REPRESENTATIVE JAMES was not certain of the total effect the                  
 Internal Revenue Service would feel by this measure.                          
                                                                               
 REPRESENTATIVE DAVIS made a motion to move CSHJR 31(WTR) out of               
 committee with individual recommendations.                                    
                                                                               
 CHAIRMAN BARNES asked if there were any objections.  Hearing                  
 none, the motion passed.