Subject: Double Taxation by Fair Tax Comment: Dear Chairman and Panel members, The national consumption tax as proposed in HR 25 (Fair Tax) provides for the imposition of a national sales tax on most purchases by most citizens. The one major drawback to this approach is that it subjects the savings any individual may already have to double taxation. Money already saved is generally from income on which a federal income tax has already been paid. Should a consumption tax be instituted, these after-tax savings will once again be subjected to taxation when spent. This is effectively double taxation of the same income by the federal government. This double taxation would particularly penalized seniors who have limited future earnings opportunities and rely on monies saved during their earning years to fund their retirement. The institution of the Fair Tax-type of system would effectively decrease their savings by the amount of the tax rate. Any consideration of a national consumption tax should provide relief for those individuals with current savings. Thank you for the consideration given to my comments. Very truly yours Bruce Klimkowsky |