Posted: Apr 21, 2005 By: Irwin \Red\ Weller

Comment: <>
Dear Tax Reform Advisory Panel! <>

As a staunch advocate of free trade I am faced with the inescapable fact
that USA is running a huge and escalating world wide trade defect and
national debit. Looking for the reason it is easy to conclude, US wages are
too high, thus pricing US products and services out of world market
competition.

An in depth analysis reveals a much more complicated array of factors that
have converted USA form a nation of trade surpluses to one of devastating
trade deficits. Of the many factors, here I will address the one most
responsible for US trade deficits; It is US tax policy.

Taxing the producer side of US economy is contrary to the concept of free
trade as well as freedom of US citizens and annually costs the nation,
public and privet, $2.18 trillion more to process than taxing the consumer
side. Irrespective of where, when or how taxes are levied or collected all
taxes are ultimately paid by the consumer.

<>

Current US producer tax policy fills all US products & services with
pre-market tax and interest on taxes that accumulate from resource discovery
threw all stages of commercial development competing at market with tax free
foreign products and services. As a US manufacturer I can compete in only
one market, made to measure or one of a kind, nearly 30% of my product sales
price is taxes plus interest on taxes, accumulated from the past.

<>

All US manufactures and service providers face this problem. Adopting
HR25/S25, switching from producer to consumer tax policy would correct the
largest part of our competitive problem, and is the least costly most
efficient point in commerce to levy and collect tax.

<>The President by executive order has established an advisory panel to
propose National Tax Policy reform.

Do you think it's better for America to continue taxing its producers,
forcing every citizen to annually account to IRS for all production income
and spending, costing the nation $2.2 trillion, just to implement the
policy; imposed by congress exercising the authority of the illegally
adopted 16th Amendment.

<>Would you prefer the code proposed in HR25 / S25 repealing the 16th
Amendment (Income tax), switching to consumer tax making America more,
prosperous and competitive; Expanding US employment and productivity;
Costing the nation less than $.18 trillion annually to implement?

It is not possible to have any meaningful tax reform as long as the congress
can exercise the authority of the 16th Amendment?

<>

Those of us who prefer freedom should contact the panel and our members of
congress outlining the reasons we prefer HR25/S25.



<><><>Executive Director;

<>

Philip Pedley

Col. Military Intelligence Ret.
<>
P.S. If there is any evidence that refutes any statement I have made, please
bring it to my attention. Truth is paramount.