Subject: National Sale Tax (Consumption Tax) Comment: Dear Members of the President’s Advisory Panel on Federal Tax Reform: Thank you for your time and efforts to examine the tax code and system of taxation in the United States with the intent of putting forth recommendations for change. Reasonable people recognize that in order to maintain this great nation of ours, certain expenditures for our national security and specific infrastructure needs are necessary – administered by a responsible government. Since government, as a rule, cannot generate the revenues needed, a method of taxation of the people is necessary. As you have already recognized, however, the current tax system has become incredibly complex, burdensome, and unfair and is sorely in need of reform. Per your panel’s recently published statement, compliance costs to businesses and individuals are incredibly high under the current system. Manufacturers of American made products must pass these costs along to consumers in the price of their goods (embedded tax). We understand that this embedded tax adds 20-30% to the price of a product. There are those who assert that this tax burden, among other issues, is what leads companies to decide to relocate their businesses to other countries. Equally troubling, there are large segments of our society (some say as high as fifty percent) who live in America and enjoy the benefits of doing so, but pay little or no taxes at all. Some allowed to do so by the rules and regulations of the current system based on their income level and other factors, but others because they are simply NOT reporting income, i.e., those who are here illegally, those who are profiting from illegal activities, and those who engage in cash only (black market) endeavors, to name a few. We have considered the different proposals, i.e., flat tax, value added tax, etc., and have become convinced that those who are putting forward the proposal for establishing a national sales tax (consumption tax) and eliminating (or drastically downsizing) the bureaucracy known as the IRS, repealing the current tax code and the 16th Amendment to the Constitution, are offering the best solution to this problem. This proposal seems to best meet the objectives as contained in the President’s Executive Order and your panel’s statement. We know the panel will be considering the details of this proposal, but a national sale tax will greatly simplify the process, be fair (since all who purchase products will be paying a tax – regardless of how their income is derived), consumers still have a choice as to what products they purchase, there is proposed a monthly rebate for the purchase of “necessity items,” and the price of American made products will be offset by market forces/competition once the tax compliance costs are eliminated. Therefore, we want to lend our support for this specific proposal and to those who will be presenting to the panel. Thank you. Mr. & Mrs. William R. Krecker Batesburg-Leesville, South Carolina |