Letters to the Editor
Letter To The Editor: Greenspan Testimony
By
Mar 6, 2005 - 1:30:00 PM
To the editor of the Canyon News,
I am writing in response to Allen
Greenspan's testimony (before the President's Advisory Panel on Federal Tax
Reform) that a consumption tax would be a good alternative to the current
income tax system.To advance another
step beyond Greenspan's testimony, I would like to inform you and your
readership of the FairTax (www.fairtax.org): a national sales tax to replace the
IRS.Under the FairTax, all purchases
made for personal consumption would be taxed, and that's it!
Currently, both
people and corporations are taxed based on what the government loosely defines
as income.There are many problems with this
form of taxation. Namely, whenever a corporation is taxed, it does one of two
things: it will either use an accountant to find every possible means of
avoiding the tax, or it will pass the tax onto the consumer.The end result: WE pay even more taxes.
For example,
if a family decides to get a brand-new (note, buying anything used would not be
taxed) 48" t.v. for the living room, they would pay what is currently
estimated to be a 23% national sales tax on that television.Before anyone balks at the idea of paying an additional
23% sales tax, keep this in mind: every component used to
make that t.v. carries a tax with it.The companies who made the individual parts for the t.v. are taxed, and
so is the company that actually assembled the t.v. All merchandise sold in the
U.S. contains layers
upon layers of taxation built-in, which raises the cost of merchandise by an
estimated 22%.Under the FairTax plan,
all those layers of taxation would be eliminated.
Also, many
politicians claim that a national sales tax would hurt those with lower
incomes.HOWEVER, the FairTax plan
accounts for this criticism by giving a "prebate" to all families to
compensate for the basic cost of living.Now, I do realize that many consider the income level that defines the
basic cost of living to be much too low.Nevertheless, a single person will automatically receive a prebate from
the government every month to total $2,141 a year, which isn't bad at all.Families, of course, would receive more.
Most
importantly, the FairTax is simple.For
today's income tax, one must hire an accountant or buy a tax program to
understand the code. Under the FairTax, all retail purchases are taxed - that's
it.
-
Clinton Smith
I applaud Chairman Greenspan's comments on replacing the
income tax with a national sales tax.I
recommend the FairTax - HR 25 and S 25. Former Secretary of State Jim Baker also
testified in favor of a consumption tax at Thursday's hearing.The most telling part of the Honorable Jim
Baker's testimony was that he repeatedly reiterated that
we should move to a consumption tax rather than add it to the existing income
tax system.The implication was that the
move should be swift rather than gradual.I could not agree more.America is fed
up with the income tax!Adding any more
complexity would be a serious mistake.Let's simplify the tax system and replace it with the
FairTax.
The FairTax is the only national sales tax plan which meets both parties and
the administrations requirements for a new tax system.It is a full tax-replacement plan not swayed
by the winds of political change which may occur in the future in
Washington. It brings transparency
to the tax system and even an 11-year-old child can explain it.
Under the FairTax,No American pays any
tax up to the poverty level. The FairTax package has a key component designed
to protect the poor, fixed-income, and middle class, where every of resident
Americans with legal Social Security numbers qualifies for a rebate. This makes it unique from any other national
sales tax and it makes it progressive! This rebate zeros any tax up to the poverty
level, as determined by the Department of Health and Human Services.For example, a family of four receives $479
per month, rebating all federal on spending up to $24,900.A couple would receive $357 per month and an
individual $178 per month.
Unlike the flat (income) tax or a French value-added tax (VAT), the FairTax
replaces the payroll tax and the income tax with a broader tax base that is
revenue neutral for the national budget, Social Security and Medicare and
allows working families to take home 100% of their paychecks free of federal
income and payroll taxes.Let's not add
anymore hidden and complicated tax systems to the current system. Let's move to
the FairTax!To learn more visit
www.fairtax.org
