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Posted on 04/15/2003 6:14:59 PM PDT by Bigun
We can do better than this 8 million-word mess
By HERMAN CAIN
Our tax code is an 8 million-word mess. It's beyond any type of reform and is unfair to every American. We are reminded of this every time we receive a paycheck.
But change may be coming since President Bush suggested in his annual economic report to Congress that it may finally be time to replace the income tax with a consumption tax. By eliminating the complexity and the thousands of arcane preferences in today's tax code, the report says, a consumption tax would not only increase efficiency but promote investment and growth.
Additionally Congress has unanimously passed a resolution that: (1 encourages and supports a national debate on fundamental reform of the Internal Revenue Code of 1986; (2 agrees with the most recent Economic Report of the President that identifies reducing complexity, improving economic incentives and achieving fairness as key objectives of fundamentally reforming the code; and (3 as part of this national debate, beginning a series of hearings to examine the case for, and the possible options for, fundamental reform of such code.
Several commissions, including The National Commission on Economic Growth and Tax Reform, on which I served, have all concluded that a replacement tax system should satisfy six principles:
•Economic Growth
•Fairness
•Simplicity
• Neutrality
•Visibility
•Stability
The FairTax, a national sales tax on consumption, meets all requirements. It has been extensively researched, analyzed and documented by some of the most respected business people, economists and academicians in the country and was introduced into Congress as The FairTax Act of 2003 (HR25). However, without the insistence of millions of voters, it will be stuck in congressional committees, going nowhere.
The FairTax is a single rate of 23 percent inclusive on all retail purchases, which would replace all personal and corporate income taxes, payroll taxes and death taxes. It eliminates all loopholes, which would generate more revenue to fund our government.
The FairTax unleashes the full economic potential of our economy. It eliminates hidden taxes and allows people to save more. The FairTax untaxes the poor by providing every American household a "prebate" for taxes on necessities before they buy, not after. It also untaxes education, which is one of the keys to an improved standard of living. Additionally, it would not punish "sweat equity." Working harder and longer would allow people to save and invest without double and triple taxation. The FairTax is simple and highly visible.
Americans just want to pursue their dreams. If we want to remain the greatest nation in the world, we must succeed at restoring hope in the hearts of every working American.
The president has shown courage to suggest that it is time to solve the problem. We must have the persistence to make sure change occurs.
Couldn't have said it any better myself!
I'm with ya!
Try 12% and cut the dang size and scope of government. What is this obsession with making sure that they have more and more of our money when we are struggling to simply stay even?!?
I'm with you and getting the FairTax enacted is the FIRST step in that direction!
Current law (PAGO) requires that any proposed replacement tax system be revenue neutral in it's 1st year and 23% is what it takes to get there!
GOP rising star.
Good to see you, old friend.
Wow! And if the pastor gets his cut, you get to keep 2 out every 3 dollars you earn!
Sing: Livin' In Americaaaaaa...!!!
There is one hugh flaw with this remark.
If the 16th amendment is not repealed simultaneously with the enactment of a consumption tax, then it will only be a matter of time when we will have both a consumption tax and an income tax.
Of course, it will be for the children.
Hmmm! I hate to tell you this but there is NOTHING whatever preventing that right now but when H.R.25 is enacted INCOME taxes become illegal by statute, the IRS is defunded, and all IRS records are required to be destroyed.
Seems to me the 16th would no longer have a point and could easily be repealed with that in place.
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