Posted: Apr 28, 2005 By: Michael Phillips

Subject: Fair Tax

Comment: April 26, 2005

Dear Chairman Mack and Tax Reform Panel members,

We support the Fair Tax, as explained on the web site www.fairtax.org It is a national retail sales tax that will accomplish all of President’s goals for tax reform. The FairTax is pro-growth, pro-family, pro-environment and pro-business. One of the biggest problems of the current system is representation without taxation, and no, I didn’t get that backwards. Our society is divided into tax payers and tax consumers. Since the tax consumers benefit from higher taxes, they are in favor of higher taxes. This produces a conflict between the tax payers and the tax consumers, which is not good for our country. The Fair Tax would involve all citizens in the support of the government and give all citizens motivation to keep taxes low. The Fair Tax eliminates the unfair taxation of U.S. citizens who are not in the country and using any of its services. The Fair Tax also eliminates the use of the IRS as a political weapon.

The Fair Tax is revenue neutral and it would eliminate the huge and abusive bureaucracy of the IRS. No tax reform program should be adopted unless it eliminates the IRS and income tax. Since it taxes only retail consumption the Fair Tax is pro-business and since it does not tax that money which is saved; it encourages savings and investment.