Comment: I would like to strongly recommend "The National Retail Sales Tax" commonly called "The Fair Tax". This type of tax system would benefit the economy greatly. Allen Greenspan is an advocate of this type of system. This system would replace the income tax, capital gains tax, inheritance tax, Corporate income tax, and payroll taxes for social security. Workers would keep their total pay check and would pay tax when purchasing new items. Each person would receive a monthly check from the federal government. This check would rebate the tax on goods up to the poverty level. Companies which are outside of the U.S. would want to relocate in the U.S. because of this tax structure (No corp. income tax). We have been struggling with how to fix social security. This system would take the burden off of the decreasing number of Workers vs. Retirees and put it into a larger base, the spending of our citizens as apposed to taxing the workers pay check. In addition our economy to a large extent is run on purchases not from income but from savings or investments. If a large purchase is made by someone taking money out of savings, with this system revenue would be generated to the government. In our current system this generates no revenue. So, normal everyday spending would generate revenue and capital spending would also generate revenue. There are always those who avoid paying income tax by hiding their income in various ways. These people do make purchases and as such would pay their share of tax. I see no down side to this system and recommend it as the best alternative to what we currently have. May I add that this would take a tool from the hands of elected officials which currently is being used to reward certain groups, (Tax breaks). No more tax breaks for friends. This makes the name of this tax system even more meaningful. The Fair Tax. Thank you for the opportunity to share my thoughts. William J. Kerr, Talking Rock, GA. |