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Letter to House Committee on Ways and Means supporting the FairTax1/10/2007
Americans For Fair Taxation
At some point, we all have to admit that the current tax system is broken and beyond repair. Even the IRS doesn’t understand the bulk of it. The staggering costs of compliance, the enormous burden placed squarely on the backs of the largest U.S. corporations, and the lack of incentive for small businesses and entrepreneurs have the cumulative effect of weakening the U.S. economy on the whole by increasing the trade deficit to horrifying levels.
Between labor outsourcing and a tax system that punishes corporations for being profitable and creating jobs, it is hard to believe that this is the same country that was founded on individuality, personal responsibility, and a drive to succeed and excel. For years I have been wondering what we could do to stem the tide that threatens to wash over us all and leave in its wake a service-driven economy. I heard about a plan called the “FairTax”, introduced by a member of your subcommittee, John Linder, and was intrigued. I read the bill and the FairTax book, and was curious as to why this bill has not been passed through both houses and signed into law.
I realize that there are concerns about the minutia of the transition period for such a radical change, as I’m sure everyone must also realize that a switch to any of the proposed tax plans would involve such a transition period.
The most important question is this: which of the proposals would be most beneficial to the country as a whole, thus making the transition period more tolerable? The answer, after rational discussion and consideration, is the FairTax.
An informal study in 1996 concluded that out of the international corporations interviewed, 75% said their future plans would include building their next manufacturing facility in the U.S. if a proposal such as the FairTax were enacted. A full 20% of those corporations further suggested that their world headquarters would be moved to the U.S. as well.
Based on all the research I’ve encountered, the FairTax will create the largest corporate tax haven in history, right here in our country. This will create the “giant sucking sound” Ross Perot predicted would follow the passage of NAFTA. The difference is, this sucking sound will not be jobs leaving the country (which has happened) but corporations, jobs, disposable income, and hence, more tax revenue, coming back to the U.S. where they belong.
On behalf of millions of disgruntled American taxpayers, I would urge you, as the esteemed Chairman of the Subcommittee on Select Revenue Measures, to explore the FairTax plan with an open mind and intellectually honest discussion, I am sure that, given consideration, this committee will see, as so many Americans are beginning to, that this is the “better way” we have all been looking and, dare I say, praying for. Thank you for your time and attention in this important matter.
Bradley S. Rees