Posted: Apr 06, 2005 By: NULL

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.