Subject: Fair Tax / National Sales Tax Comment: I would recommend that the panel explore the Fair Tax as an alternative to the current Income Tax Code. The Fair Tax would abolish the Tax code, allowing American citizens to retain the money that they have earned. In order to fund current government programs, a national sales tax would be implemented. All current government programs can be funded through the sales tax. The money that had been taken in the form of payroll deduction would be reentered into the economy in the form of purchases made by all American citizens. I don't know about you, but I don't hide my money in a mason jar in the backyard. My money is spent on groceries, clothing, gasoline, household items, and the like. It goes into the economy when I invest in stocks, when I put money into a savings account, or a retirement fund. The money I spend doesn't stay in a bank, it's loaned out, or withdrawn by other depositors. If the Fair Tax is adopted, not only would current taxpayers pay tax in the form of a sales tax, the "shadow world" of people who do not have "traditional" jobs, such as drug dealers, would pay taxes. They currently do not pay tax. Under the Fair Tax, they would. Tourists would pay a sales tax. Currently, they pay only a state or local tax. Helpful to the local economy, but not so good for the Federal economy. Everyone pays the same tax, and everyone pays a tax when they make a purchase. It's the great equalizer, it's non-discriminatory, and doesn't care whether a person is rich or poor, black or white, and doesn't care about their marital status. It's the only fair way to make sure that everyone pays their fair share. I cannot strongly enough suggest that the panel closey look at HR25/S25 when considering tax reform. It's the only plan that is fair to everyone. Thank you for giving me an opportunity to submit my comments. |