Posted: Oct 18, 2005 By: Jordan Dea-Mattson

Subject: A National Sales Tax is the best option

Comment: Dear Advisory Panel -

Our current system of taxation - if we are honest with one another - is broken, unfair, and counter productive to the purpose of raising revenue while promoting economic growth.

The current system is riddled with loop holes favoring this or that special interest, creating a sense among Americans that “the fix is in”, which leads to a disrespect for our system of laws and the government in general.

The current system is baroque and complex to the point of being unknowable and un-understandable. This leads to massive compliance costs, measured in the 100s of billions of dollars per year and to unwitting violation of tax laws by innocent taxpayers.

The current system is unfair and does grave harm to those who are at the bottom of our society. It makes a mockery of our claim that our tax system is progressive (if you doubt this, just look at the percentage of one’s income paid in Social Security Payroll taxes on $20,000 a year vs. $100,000 a year).

Unfortunately, the two plans it appears you will be putting forward to reform our tax system, do not address the fundamental problems in our tax system and will not improve fairness. These proposals are akin to rearranging the deck chairs on the Titanic. Unfortunately, this tinkering does nothing to address the underlying problems in our tax system.

I am a strong supporter of HR 25, the so-called "Fair Tax", because I believe it will provide a system of taxation which is fair, protective of the poor (through the "prebate" and the elimination of the payroll tax which is highly regressive), provides a level playing field of economic incentives (therefore not distorting economic activity in one direction or another), and is rational and transparent.

I strongly urge you to study HR 25, look at a wide-range of studies on its positive impacts on fairness, rationality, and transparency, and consider what system of taxation will best serve the citizen of the United States.

I believe if you are honest, don't allow pre-conceptions to interfere with your analysis of the legislation and its provisions, and have the courage to make a radical fix, you will come to the conclusion - as I did - that HR 25 is the best choice available when compared to our current system and the alternatives before us. In doing so, you will be in the good company of Alexander Hamilton, who in Federalist No. 21, stated: “The amount to be contributed by each citizen will in a degree be at his own option, and can be regulated by an attention to his resources. The rich may be extravagant, the poor can be frugal; and private oppression may always be avoided by a judicious selection of objects proper for such impositions… It is a single advantage of taxes on articles of consumption, that they contain in their own nature a security against excess.”

Yours,

Jordan Dea-Mattson
311 Jessie Lane
Mountain View, CA 94041