Tax Code Termination Act

The Tax Code Termination Act (S. 3047) proposed to abolish the majority of the existing Internal Revenue Code by the end of 2013, with the exception of Social Security and Medicare taxes. To replace the current system, the bill would have established a national commission to study alternative tax structures, such as a flat tax or a national sales tax, and recommend a simpler framework to Congress. Under this legislation, the federal government would have been required to approve a new tax system by July 4, 2013, or the existing tax code would have expired entirely.