SOTU, Testimony, S.13, and other news
The State of the Union speech included an issue dear to our hearts – real and dramatic tax reform.
Even President Obama finally acknowledged what everyone knows – the tax code is a destructive mess and it’s hurting the country.
“…so tonight, I’m asking Democrats and Republicans to simplify the system. Get rid of the loopholes. Level the playing field. And use the savings to lower the corporate tax rate for the first time in 25 years — without adding to our deficit. It can be done.” – President Barack Obama
Here is a copy of the written AFFT testimony submitted to the House Ways and Means Committee, for the 1-20-11 hearing on tax reform.
Phil Hinson comments,
Excellent written testimony – every FairTax supporter should take the time to read this. I especially liked this statement:
“Our failure to counteract these border-adjusted taxes explicitly encourages consumption of foreign, rather than American, goods. And it converts many of our nation’s retailers into what are effectively tax-free trade zones for foreign produced goods”.
This is a very powerful way to make the case for a border adjustment mechanism in our tax system.
Other quotes were brought to mind while reading this testimony:
“If the U. S. truly repealed its corporate income tax and replaced it with what is essentially a border adjustable consumption tax, the U. S. would be one heck of an attractive place to invest. In fact, the U. S. would be the world’s largest tax haven. We would be better than Ireland. Any foreign company could come here and manufacture and there would be no income tax. Remember that I said that 120 countries in the world had VATs? None of them repealed their corporate income tax. This would get rid of the corporate income tax and put in place this consumption tax, so you can imagine that this would make the U. S. a very, very attractive place to invest and it would undoubtedly lead to international repercussions that would be quite interesting. I think other countries would probably copy.”
Dr. Peter R. Merrill
Director, National Economic Consulting Group
Former Chief Economist, Joint Committee on Taxation
In other news…
- The FairTax bill was introduced into the Senate as S 13. The Senate Sponsor of the FairTax bill, Sen. Saxby Chambliss [GA], was joined by 5 cosponsors.
- AFFT asks us to “Bomb The Tax” – Sure the media will be all over this “angry rhetoric” that would supposedly have crazies attacking the IRS.
- After many years debating online, Hayden and Morphh finally got together in Atlanta for a couple beers and friendly conversation.