Subject: Support for the Fair Tax Act Comment: I agree with Chairman Greenspan regarding replacing the income tax with a national sales tax. I recommend the FairTax as set forth in HR 25 and S 25. I also agree with Former Secretary of State Jim Baker testimony in favor of a consumption tax. The most telling part of the Honorable Jim Baker’s testimony was that he repeatedly stated that we should move to a consumption tax rather than add it to the existing income tax system and that the move should be swift rather than gradual. I could not agree more. America is fed up with income tax! Adding any more complexity would be a serious mistake. Let’s simplify the entire tax system and replace it with the FairTax. The FairTax is the only national sales tax plan which meets both parties and the administrations requirements for a new tax system. It is a full tax-replacement plan not swayed by the winds of political change which may occur in the future in Washington. It brings transparency to the tax system and anyone can understand it. Under the FairTax, no American will pay any tax up to poverty level incomes. The FairTax Act has a key component designed to protect the poor, fixed-income, and middle class, where every resident American with a legal Social Security number qualifies for a rebate. This makes it unique from any other national sales tax and it makes it progressive! This rebate zeros any tax up to the poverty level, as determined by the Department of Health and Human Services. For example, a family of four receives $479 per month, rebating all federal on spending up to $24,900. A couple would receive $357 per month and an individual $178 per month. Unlike the flat (income) tax or a French value-added tax (VAT), the FairTax replaces the payroll tax and the income tax with a much broader tax base that is revenue neutral for the national budget, Social Security and Medicare and allows working families to take home 100% of their paychecks free of federal income and payroll taxes. Let’s not add anymore hidden and complicated tax systems to the current system. Let’s move to the FairTax! |