Subject: NRST generally / HR-25 specifically Comment: Now that April 15th has come and gone again, taxpayers know only too well why your panel has been commissioned. One recent headline reads: "Americans Spend 6.6 Billion Hours on Taxes " and as everyone knows, our current federal income tax system is broken. It: -is unfair, costly, confusing, inefficient, and time consuming -punishes hard work and thrift -is harmful to the economy by raising the price of consumer goods 20% to 30% -allows many to avoid paying their fair share by missing the underground cash economy -violates the 4th Amendment protecting the security of our "houses, papers, and effects" The best way to eliminate these problems is to repeal our current income tax system and REPLACE it with a National Retail Sales Tax. A bill which would do this has already been reserched and introduced in Congress. It is called the FairTax Bill (HR-25/S-25) and it will: -tax everyone fairly and simply after giving an immediate pay raise and exemption to people who are below the poverty level -reduce the cost of goods and services by 20% to 30% causing little or no net gain in the price of goods when the tax is added -lower overall tax rates for lower and middle income Americans -effectively tax the underground, cash economy -eliminate all IRS tax forms and the professional fees needed to prepare them stop billions of dollars spent by influence peddlers and deal makers lobbying congress for special tax credits -rescue Social Security from its developing funding shortfall -create many new jobs by boosting our GDP by approximately 10.5% according to Harvard economist Dr. Dale Jorgenson -improve our foreign trade deficit by making us more competitive and attracting new business to America including $6 Trillion invested in tax friendlier countries -allow individuals to control the level of tax they pay -repeal all federal income taxes, corporate income taxes, self-employment taxes, capital gains taxes, gift taxes, and death taxes -allow everyone to keep 100% of their paycheck by repealing all payroll withholding taxes -replace the IRS as we know it and save $250 Billion nationally in bureaucracy costs ALL THIS AND STILL ALLOW THE GOVERNMENT TO RAISE MORE MONEY THAN IT RAISES NOW! Some of the better known individuals and groups who support this bill or the concept of a National Retail Sales Tax over a Flat Tax include: Federal Reserve Chairman Alan Greenspan: http://www.foxnews.com/story/0,2933,149298,00.html House Speaker Dennis Hastert: http://www.townhall.com/columnists/larrykudlow/lk20040805.shtml Former Speaker Newt Gingrich: Sean Hannity Radio Show, March 3, 2005 The CATO Institute: http://cato.org/pubs/pas/pa-272.html National Taxpayers Union: http://www.ntu.org/main/letters_detail.php?letter_id=29 Farm Bureau: http://www.fb.org/issues/backgrd/ The Joplin Globe: http://www.joplinglobe.com/story.php?story_id=156892&c=96 100 US Economists: http://www.fairtax.org/pdfs/Open_Letter_President.pdf Please include the FairTax in your study of tax reform options. Sincerely, John Putnam 1239 County Rd 110 Carthage, MO 64836 |