Subject: Enact the Fairtax, repeal 16th amendment Comment: Dear Tax Reform panel: I watched the tax reform proposals on CSPAN2 with interest a couple weeks ago. We need tax reform, and not just 'tinkering' - we need an overhaul. Our current income tax system that is often touted as "progressive" is in fact quite REGRESSIVE. Hard-working Americans, businesses, and retirees are penalized for working more or saving more. This is ridiculous. My father-in-law owns a business, and instead of being taxed simply on profits, he is taxed on a myriad of other factors (even if they LOSE money). Our current tax system is incredibly complex and employs quite a bit of secrecy and deception in the process. Consider the following points I have learned in the past several months: 1. The ‘Federal Excise Tax’ on our phone bill was enacted to pay for the Spanish-American War. Why must we still pay this? 2. The 'withholding' tax was created during World War II. It was supposed to be a TEMPORARY program to support our troops, and was supposed to END with the War. That obviously didn't happen, as our government didn't want to lose that cash cow. We have had this 'hidden' income tax vacuum since then: the highly regressive payroll tax. 3. According to 2004 figures, for the average American family who paid about $8000 in income taxes, anywhere from $1800 to $2200 of this was to pay for the tax EVASION of others. What family couldn't use that extra $2000 per year? The IRS estimates that the annual noncompliance rate with income taxes is 40%! 4. The underground economy (drug dealers, gambling, prostitution, illegal aliens, etc.) is reported to be about 1 TRILLION dollars of untaxed income. Someone else has to pay for that shortfall. 5. Over half of all lobbyists in Washington, D.C. are tax lobbyists. These people work their "magic" to add loopholes, exclusions, and the like to offer special favors that the American people have to pay for. It needs to stop. These types of things are just the tip of the iceberg. Ask Joe Scarborough or read his "Rome Wasn't Burnt in a Day" book for more examples of government waste and abuse. Does this information make you angry? Good! Does our government need to levy taxes? Of course, or we couldn't pay for anything. The problem is that it is using (or abusing?) the tax code for ulterior motives. The Fairtax is a refreshing solution. With its enactment, and then the repeal of the 16th amendment (income tax), freedom can truly come to Americans. I strongly encourage you to support the Fairtax because it will: a. UNtax the poor (and all Americans) with a monthly pre-bate. b. Encourage working and saving. c. Remove the hidden taxes in goods and services. d. Provide a much larger source of income for Social Security and Medicare. e. Encourage economic growth and job creation. f. Remove taxes on business purchases. g. Lower the price of American exports. h. Draw corporations HERE instead of having them move to China or India, etc. i. Spread the tax burden much more broadly, so we all pay less. j. Tax illegal/underground/foreign incomes. k. Save TONS of time and money each year filing, filling out forms, and reporting our income. All that work (and billions of dollars spent) is just to say what we've earned. How ridiculous! l. Free Americans from having the IRS breathing down their neck, ready to audit them if they didn't fill out their forms the right way. m. (BIG PLUS) Government tax will be right out in the open for all to see! No more secret, hidden taxes, no more loopholes, no special concessions, no social engineering, no more widespread evasion. You see the tax right on your cash register receipt. n. Self-regulation: if you spend more, you pay more; if you spend less, you pay less. Many leading economists support the Fairtax as it has great potential to stimulate our economy and make it continue to get even better. Sorry this was so long, but it needed to be said. I applaud your efforts as you consider the tax reform proposals and present your well-researched recommendations to the president. I encourage you to support the Fairtax and repeal the 16th Amendment. I believe this benefits all Americans, not just the few or the privileged. Make April 15th “just another day.” Thanks and have a good day. :) |