A Fair Tax Proposal
There is no escaping the fact that Washington has a spending problem. The national debt recently passed $13 trillion, and yearly trillion dollar deficits are predicted for at least the next decade at current spending levels. However, Washington also has a taxation problem.
There is little dispute that the current tax code is too difficult to understand, too punitive and too easy to avoid through loopholes. In its place, we need to implement a tax code that is simple, fair and promotes economic growth. That is why I am a co-sponsor of the Fair Tax.
The Fair Tax would repeal the income, employment, estate, and gift taxes. In their place, it would institute a national sales tax on services and property purchased. However, there would be certain exemptions for personal investment and businesses. It also eliminates all federal taxes for those below the poverty line.
A national sales tax would be much more transparent than the existing income-based taxation system because you would see exactly how much you had been taxed every time you made a purchase. In the process, many experts predict it will provide ample funding for the programs responsible governments are supposed to control while lowering the actual amount paid by many taxpayers.
Make no mistake, many people in Washington hate this idea because they want to spend as much of your money as the can. But just as Congress must address its spending problem, we also need to deal with our taxation problem. The current system just isn't working.
Sincerely,
