Subject: Tax reform proposal Comment: It seems that a consumption tax with a rebate up to the poverty level is the simplist, fairest, cheapest, and most pro-growth option. From my research, Congressman John Linder's Fair Tax proposal meets most, if not all, of President Bush's requirements. It meets the objective of being simple and transparent. It is fair. No US citizen pays taxes up to the poverty level, the poor pay no taxes. All "illegal activities" (people in the US illegally, drug trade)and "underground"(pornography, cash payroll) businesses are taxed when they purchase goods and services. Its largest impact would be on growth and competitiveness. To keep this short, I will not go into all the details but mention a few. With businesses not paying taxes on profits, the US would be a magnet for corporate headquarters and foreign investment. As for competitiveness, with businesses relieved of payroll and income taxes, American exports become cheaper. It will cost less to run an American business and reduce outsourcing and offshoring. As it is now, all taxes and compliance costs incurred by businesses are passed on to the final consumer anyway. This proposal just eliminates the administrative costs and political lobbying in between. Sincerely, Christopher Bogart |