Posted: May 03, 2005 By: Larry Melton

Subject: Tax Reform

Comment: Dear Chairman Mack and Tax Reform Panel members,


I am thankful to have this opportunity to address you regarding my personal choice of a tax reform option.

I believe that now is the time to totally reform our system of taxation. The income tax system is not working for our Nation. It is too complicated for the IRS to understand, let alone an average working American, such as I.

I believe that the best reform option for tax reform is the National Retail Sales Tax, but not just any National Retail Sales tax, I believe the best option for reform is the National Retail Sales tax known as The FairTax or Bill H.R. 25/S 25.

I have heard some discussion of combining a National Retail Sales Tax with our current system. This will only serve to make the system of taxation in our country even more complicated and confusing, defeating the purpose which the President specified, that it should be simple and fair. Only the FairTax system of taxation does away completely with the complicated income tax. Only the FairTax plan provides the means of abolishing the IRS and removing the 16th amendment. No other plan will do.

The FairTax will go a long way toward helping the poor of our Nation, as well. Poorer Americans will be able to better control how much they spend in taxes. They will have more money to save and invest in their future and the future of their children as they will be receiving 100 percent of their paycheck upon the implementation of the FairTax. Every American will also receive a pre-bate check every month to cover the taxation on essential goods and services. Poor people will be spending less in taxes but the very wealthy will not change the lifestyle to which they are accustomed in order to avoid taxation, therefore, they will be spending more on taxation than they have in the past, when they have been allowed to take advantage of tax shelters and havens.

The FairTax will halt illegal immigrants from being able to skirt our system of taxation. Every new good and service will be taxed, no longer will they be able to go untaxed.



The FairTax will level the playing field on foreign trade. Encouraging investors, encouraging domestic businesses to do their business here rather than outsourcing our jobs to other countries. Because our domestic companies will no longer be taxed on productivity it will also encourage foreign businesses to move into our market. Further, we could be viewed as a “tax haven” for foreign investors allowing us to take advantage of investments which historically have left our country and gone to foreign countries.

It is time, at last, to reform our tax system into a simple, fair and progressive tax. That tax is The FairTax.

Thank you.

Sincerely,

Larry Melton