I understand that there is an enormous inertia in the present tax system. The incremental complication of the tax code over the last 80 years has given birth to an entire industry that is fully capable of defending their turf.
These are challenging times. The American people are equally unhappy with this administration and the Democratic opposition over the handling of the war in Iraq. There has been a lack of planning, and open discussion that has led to a breakdown in communication.
While we wrestle with the war, we grow even more cynical about the power of special interests and the remoteness of Washington. I believe the President should support HR 25 and help enact the Fair Tax initiative for the good of the nation. It would be a golden opportunity to act decisively to fix an antique that is a drag on the whole economy. It would be benefit most of the people – a rare opportunity to do good.
In true wishy-washy style, the President's Tax Advisory Panel ignored considerable research and grossly misstated the potential effects of the Fair Tax. Committees frequently fail to provide clear and decisive recommendations. They prefer to pander to the lobby and avoid risks rather than seek the best available solution and advise the President on managing risks associated with change.
If you look at the risks associated with doing nothing, they are staggering. President Bush formed the Tax Advisory Panel because he was seeking breakthrough thinking and a plan to promote simplicity, fairness, and transparency. The Panel failed, but the President need not.
The Fair Tax replaces all federal income and payroll taxes with a revenue neutral, 23% national sales tax. It is inherently fair because it taxes consumption. The more you spend the more you are taxed – that simple.
I urge you and the Treasury Department to offer offer creative alternatives to the President including the Fair Tax, since the Fair Tax will energize the American economy and engage the American people. It will also enhance the President's legacy, since it will take a man of vision to unite the country and deliver true tax reform.
