In a few weeks, President Bush and Senator John Kerry will meet once again on the debate trail to describe their respective visions for America's economic future. It is my hope that they will talk about how to fix our flawed tax system.

Our current income tax is unfair, complex and inefficient. Each year, the tax code costs the American people over 6 billion hours and over $180 billion in opportunity costs. This is precious time that could be spent with family and valuable resources expended that could be used to grow the economy, increase take-home pay and boost living standards. The tax code is broken, and I believe the best way to fix it is to adopt a flat tax, which would replace the current income tax with a single-rate consumption-based system.

The flat tax concept is easy - there are two components, the individual wage tax and the business tax. Individuals pay a flat rate on their wage and pension income, and business are taxed on their profits minus their wage and pension expenses - this ensures that income is only taxed one time. Capital gains, dividends, and interest are only taxed once, and they are taxed at the business level. Additionally, the flat tax repeals the Alternative Minimum Tax and the marriage penalty.

In April 2003, I introduced H.R. 1783, The Freedom Flat Tax Act, which would establish a voluntary flat consumption tax. The Freedom Flat Tax Act allows taxpayers to choose if and when to opt into a flat tax system and sets that flat rate at 17 percent after two years of participating in the system. To ensure that lower-income taxpayers are able to afford necessities like housing and health care, my proposal allows limited personal exemptions, including $5,300 for each dependent child. Under H.R. 1783, a family of four would not be subject to the flat tax until their combined income reached $35,400, which is 194% above the 2002 federal poverty level of $18,244.

I believe that it is time to trust the American people to decide for themselves which type of tax system is best for them and their families. It is reasonable to provide another option to the income system that restores fairness to the code, reduces the complexity for millions of taxpayers, and encourages economic growth.

The flat tax will provide a system that is fundamentally fairer. Our current system is characterized by dozens of credits and deductions, stemming from years of trying to drive a social agenda in our current system. The result is a complicated federal tax code which provides an opportunity for tax avoidance by exploiting loopholes and tax shelters.

The beauty of the flat tax is its simplicity. By eliminating the credits and deductions that characterize the income tax system, abolishing multiple layers of taxation, and eliminating the complex depreciation schedules for businesses, the flat tax will restore fairness and simplicity to the tax code.

Simplifying the tax code under the flat tax will encourage economic growth by easing the burden on the taxpayer and entrepreneurs. The flat tax will especially benefit small businesses, which today create the majority of new jobs and account for half of the economy's private output, by allowing for the immediate expensing of capital equipment.

A flat tax would be much less costly, saving taxpayers more than $100 billion per year and reducing tax compliance costs by over 90 percent, according to one estimate by The Tax Foundation, a non-profit, non-partisan 501(c)(3) educational organization. This savings will give people and businesses more money to spend, ultimately boosting take-home pay, spurring the economy and creating jobs.

The good news is that we are already on the glide path towards the flat tax. The 2001 and 2003 tax cuts that Congress has passed under President Bush's leadership were a good start, but now we need to finish the job. The American people deserve a federal tax system that rewards them for their hard work.