Rep. Bill Archer, Chairman, House Ways and Means Committee:
"A recent survey was done, in Europe and Japan, of the major corporations and I was astounded at the results. They were asked, 'If the US abolished its income tax and went to a sales tax, would that have any impact on your decisions?' Eighty percent of the corporations said they would build their factories in the United States of America. Twenty percent said they would move their international headquarters to the United States of America."
The large influx of new jobs, among other things, means the current trade imbalance (deficit) will balance out and likely tip to USA advantage. In other words, a greater percentage of products and services will be made in USA, thereby foreign governments will see their tax receipts decrease.
In order for foreign governments to retain their present level of tax receipts they'll have to replace their outdated, economy-draining tax systems with a consumption based sales tax.
The USA can lead the way to honest economic freedom and financial privacy the world over -- beginning with it's own citizens.
With outsourcing by American based companies, many of which are also building new manufacturing plants in foreign countries it would only deepen the trade deficit if a major first world country beats USA to the punch by implementing a consumption based sales tax first. That country would get the new jobs and USAs trade imbalance would widen.
It's not a matter of if consumption-based sales tax will gain dominance the world over, but when, and which country will lead the charge and which countries will play catch up.
The United States must take the lead.
That's the short list. For more information see fairtax.org
The problem is not the IRS, the problem is the tax code.
And to repeat what I said earlier, paying taxes SHOULD HURT! It should make you wake up and ask what you're paying for.