Subject: Benefits of H.R. 25 FairTax NRST Comment: Ladies and Gentleme of the Tax Reform Panel: There are many positives to the FairTax NRST and surely some negatives; no system is perfect, but we desperately need tax reform that will simplify how revenue is captured, produce significant economic growth, improve our competitiveness and be fair. A NRST as layed out by the FairTax folks addresses these needs in a simple straighforward manner. I was struck listening to the various proposals discussed during the hearing earlier this month at how complex most were. Complexity may be good for tax attorneys, CPAs and lobbyists but it's bad for the rest of us. Economic growth and a return to global competitiveness is what we need. We have very large bills looming. Social Security and Medicare, particularly Medicare, are in serious financial trouble. The only solution is significant increases in federal revenue. We can't tax ourselves into prosperity, but prosperity will bring forth tax revenues. Those disparaging of the Fairtax assert that it is not progressive and is unfair to the middle class. The prebate that reimburses all families for spending up to the poverty level makes the proposal progressive. However, the progressivity assumes an equal savings rate across incomes levels which is probably not practical reality. So I'm quick to acknowledge that this system could be beneficial to those with higher incomes. However, the burden will NOT be more to any group than they are currently paying and everyone has control of what they pay on two levels. One, used products are not taxed and two, nor are savings. With the current pitiful savings rate I would think the latter would be something that politicians should be encouraging. Any additional savings from all income levels will not be lost to the economy. It will go to good economic use. With the increased economic activity a NRST will foster business investment will have to increase to meet the international and domestic demand. The increased savings will help finance this expansion. Ladies and Gentlemen, this proposal makes so much sense on so many levels it should be on everyone's A list to be recommended to the administration for futher study and implementation. Thank you very much for your sevice you the country. Regards, Theirn J. Scott, Jr. 105 Millennial Court Lawrenceville, GA 30045 |