Subject: Tax Reform Comment: May 19, 2005 President's Commission on Tax Reform Washington, DC Dear Panel, I support the repeal of the 16th amendment, to be replaced by a new amendment authorizing Congress to establish a single rate national retail sales tax not to exceed 15%. This tax has numerous advantages over the current federal income tax: 1. It is voluntary. If you choose not to spend your money, you don't pay tax. This is the only moral way for the government to collect money. The current income tax is legislated theft. 2. It is fair. Everyone pays the same rate, regardless of race, creed, color, religion, sex, marital status, sexual orientation, and wealth. The graduated progressive income tax rates penalize productivity and success, and have been used to create class warfare between "rich and poor". The rich who spend more will be paying more taxes than the poor. 3. It is easy and cheap to collect. Most states already have sales taxes, and the federal tax can be levied on top of the state taxes to be paid at the cash register. The current system costs billions of man hours to administer, and many people avoid paying income taxes (legally or illegally). The dreaded IRS would vanish, and all of could rest easy, never fearing an audit. 4. It is visible. Everyone would know how much he pays. A European VAT would be mostly invisible, and subject to political manipulation. Payroll deductions for income taxes lead individuals to believe that taxes are the government's money, not theirs. 5. It would boost the economy. A consumption (sales) tax encourages savings, whereas an income tax discourages hard work and business investment. More savings means more growth. A single rate sales tax avoids all the wasted intellectual effort spent trying to avoid paying income taxes. All the economic distortions caused the complex income tax code would vanish. 5. It would get the money out of politics. By removing tax exemptions and favorable treatment granted to certain businesses or individuals, there would be no point in special interest groups lobbying Congress, and no point in large political contributions designed to buy influence from politicians. This would be true campaign finance reform without the unconstitutional limitations on free speech the ineffectual McCain-Feingold act proscribes. Thank you, George C. Dick 3721 Edmond Lane Louisville, KY 40207 |