Observer Online | Viewpoints | Letters to the Editor

Posted April 14, 2006

Tax Proposal is Good Tax Reform

To the editor:

It's tax time again. Millions of Americans will be spending numerous hours to prepare their federal income tax return, or paying someone to do it for them, to meet that dreaded day April 15 (Well, this year it's April 17, but you know what I mean).

Our tax code is complex, lengthy, tiresome, discourages investment, costly and overall, it is counterproductive. Don't get me wrong, I do feel like we need to pay our fair share. However, Congress and the Senate both have pending bills that, if passed, will clear up a lot of this mess and headache. These bills are HR25 and S25, The Fair Tax Act of 2005.

Under the Fair Tax Act, there will be a national retail sales tax on new goods and services consumed as opposed to having our income taxed. By doing it this way, workers will be able to keep 100 percent of their paycheck, minus state taxes, healthcare, etc. This will also ensure that everyone will be contributing to the tax base, including those who participate in the underground economy, where there is an estimated $1 trillion to $1.5 trillion of untaxed revenue. And it will tap into the estimated 50 million tourists and visitors that come to this country each year.

In addition, the government will refund monthly prebates equal to the amount of consumption tax we would be expected to pay on life's basic necessities.

Businesses and jobs will return to the United States from overseas as they will not have an oppressive tax system to deal with and will be able to compete on a level playing field in the global market. Trillions of American dollars, that are invested overseas to escape unfair taxation will return to the United States and further spike the economy.

Obviously, all the fine details of the Fair Tax Act can not be outlined in this letter. So, I encourage people to visit www.fairtax.org or call 1-800-FAIRTAX.

April 15. Let's make it just another day.

Kevin Simmons

Reston