Posted: Apr 25, 2005 By: Richard L. Guion

Subject: Tax Reform

Comment: Sirs,

Attached as requested.

Richard L. Guion

Senior Systems Analyst

Titan-Unidyne, LLC

Navigation Testing & Engineering

3835 E. Princess Anne Road Norfolk, VA 23502

Office: 757.858.9257
Cell: 757.725.6517

Re: Federal Sales Tax

Who pays income tax? I pay income tax. My wife pays income tax. My 18 year old student son gets it all back because he doesn’t make enough. Poor people pay income tax. Rich people pay income tax - though I’d bet I pay a higher percentage overall at a lower income than many of them do. They can afford the tax attorneys and accountants to make sure of that. Generally, most honest hard working American citizens pay income tax.
Who doesn’t pay income tax? The 1.8 million illegal Mexican workers in southern California don’t pay income tax. Tourists don’t pay income tax. Really rich people spend more money avoiding income tax than I gross in the entire year.
Want to get everybody paying income tax? I sure do. Dump the federal income tax system completely and institute a federal sales tax. Rich people buy things, a lot of things – pay a lot of tax. Illegal aliens buy things – pay tax. Tourist definitely by things – pay tax. Ordinary folks buy some things – pay some tax. Poor people don’t buy much – pay less tax.
Political ramifications – President Bush adds the elimination of the number one hated Government organization by the majority of voters to the Republican’s resume.
Economic ramifications – A few hundred IRS employees have to find new jobs - not going to break my heart. The Federal Treasury gets paid monthly vice yearly – just think of the added earned interest! The GPO doesn’t get to print all those 10-something forms anymore – decrease their budget. Everyone pays tax. The more you make, the more you buy – the more you pay. But, we also get to stick it to everyone in the entire country. Even those non income tax paying folks we now support through social programs that the rest of us have to pay for. Which means the rest of us should be paying less overall.
Active citizenship is important, and though I’m not an economist or a mathematician, I guess if I’m willing to support such an initiative, I’m willing to help implement it. So if you need help, feel free to call.
Just a thought…
Richard L. Guion