-----Original Message----From: Rcvandiver9@wmconnect.com [mailto:Rcvandiver9@wmconnect.com]
Sent: Monday, March 14, 2005 10:06 PM
To: comments
Cc: Gloria@fairtax.org
Subject: (no subject)
Response to request for comments by the Federal Tax Reform Panel on
Feb. 16, 2005.
Roger C. Vandiver
264 Bohler Drive
Evans, Georgia 30809
March 5th, 2005
Individual Submission to Federal Tax Reform Panel
1. Headaches, unnecessary complexity, and burdens that taxpayers - both
individuals and business - face because of the existing system.
Patching up the exiting code of the Federal Income Tax is pointless.
The present Federal Income Tax system benefits the wealthy and tax
experts more. The average man cannot keep up with all the rules,
benefits, and all the other changes that is required differently each
year. Only the Tax Experts that makes their living doing taxes for the
wealthy. Federal Income Tax is once a year burden and the burden of
doing it yourself is usually a timely and complex situation that one
don't need. It would be fair to say over half of the population of the
United States cannot properly fill out their income tax correctly or at
all because of the complexity and headaches it
cause.
It's time for a fresh approach, a fair approach. It's time for the
Fair Tax.
2. Aspects of the tax system that are unfair.
The current Federal income tax system is broken. We need a far more
Fairer Tax for everyone. The Tax Experts will be paying more for what
they buy
like everyone else, the more you buy, the more you pay.
The income tax exports our jobs, rather than our products. The FairTax
will bring jobs home. The FairTax does not burden US exports, thereby
increasing job creation in US manufacturing sectors. At home, imports
are subject to the same FairTax rate as domestically produced goods.
Not one do the FairTax put US products sold here on the same tax
footing as foreign imports, but the dramatic lowering of compliance
costs in comparison to other countries value-added taxes also give US
products a definitive pricing advantage which foreign tax systems
cannot match. You don't have to be an expert to determine your Federal
Taxes. It's simple, everyone pays their fair share of taxes withthe
Fair Tax, spending up to the poverty level is tax free.
a fresh approach, a fair approach.
It's time for
3. Specific examples of how the tax code distorts important business or
personal decisions.
Hidden income taxes and the cost of complying with them currently make
up 20 percent or more percent of all retail prices. Hidden income
taxes are passed on to the consumer in the form of higher prices - from
an average percent on goods to an average 25 percent on services - for
every thing you buy competition does not allow prices to rise,
corporation lower labor costs, again hurting those who can least afford
to lose their jobs. Finally, if prices are as high as competition
allows and labor costs are as low as practical, profits/dividents to
shareholders are driven down, thereby hurting retirement savings for
moms-and-pops and pension funds invested in Corporate America. With
the FairTax, the sham of corporate taxation ends, competition drives
prices down, more people in America have jobs, and retirement/pesnsion
fund see improved performance.
4. Goal that the Panel should try to achieve as it evaluates the
existing tax system and recommends options for reform.
The FairTax is a voluntary "consumption" tax: the more you buy, the
more you pay in taxes, the less you buy, the less you pay in taxes.
Today, the IRS will admit to 25 percent noncompliance with the code.
However, one needs to take into the account the criminal/drug/porn
economy, which equally conservative estimates put at one trillion
dollars of untaxed activity. The FairTax will tax the criminals love
to flash the cash at retail - while continuing to provide the federal
penalties so effective in bringing such miscreants to justice.
So now with FairTax, the more you buy the more you pay. The FairTax
pays for all current government operations, including Social Security
and Medicare. Government revenues are more stable and predictable than
with the federal income tax because consumption is a more constant
revenue base than is income.