Friday, February 8, 2008

Georgia Re. Paul Broun Becomes 69th FairTax Co Sponsor!!!

Great news on the FairTax front this morning!

Feb 6th, 2008


Congressman Broun Cosponsors "FairTax Act of 2007"; Calls
for
Elimination
of the Internal Revenue Service

Broun: "Adopting the FairTax and eliminating the
Internal Revenue
Service
are ideas whose times have come."

Washington D.C.- Congressman Paul Broun today announced his co-
sponsorship of H.R. 25, the "FairTax Act of 2007." This bi-
partisan
legislation
, which was introduced by Rep. John Linder (R-GA) and
Rep.
Dan Boren
(D-OK), repeals all corporate and individual income taxes
,
payroll
taxes, self-employment taxes, capital gains taxes, and gift
taxes in favor of the simpler, consumption- based FairTax. The
FairTax
would
be collected at the point of sale, and its adoption would allow
for the elimination of the excessively bureaucratic and needlessly
intrusive Internal Revenue Service.

"Adopting the FairTax and eliminating the Internal Revenue
Service
are
ideas whose times have come," said Broun. "For too long the
American people have been asked to comply with an incomprehensible,
loophole riddled, lobbyist friendly income tax code that makes it far
too easy for innocent taxpayers to find themselves left to the mercy
of a punitive Internal Revenue Service. By adopting the FairTax,
we
can
turn the tables and empower taxpayers to control how much of
their money they are willing to send to Washington while also
eliminating the need for the IRS. Switching to the FairTax
would
stimulate
our economy by promoting saving and by immediately lowering
the embedded costs of all goods and services. The FairTax is good
for
the
economy, and advances my goal of limiting the size and scope of
government's reach into people's lives. I am proud to co-sponsor
this
legislation
, and I commend Rep. Linder for leading the effort to pass
it."

1 comment:

Ian said...

Gov. Huckabee's advocacy of the FairTax is the single most important policy position in this election. Research findings explain why:

The FairTax rate of 23 percent on a total taxable consumption base of $11.244 trillion will generate $2.586 trillion dollars – $358 billion more than the taxes it replaces [BHKPT].

The FairTax has the broadest base and the lowest rate of any single-rate tax reform plan [THBP].

Real wages are 10.3 percent, 9.5 percent, and 9.2 percent higher in years 1, 10, and 25, respectively than would otherwise be the case [THBNP].

The economy as measured by GDP is 2.4 percent higher in the first year and 11.3 percent higher by the 10th year than it would otherwise be [ALM].

Consumption benefits [ALM]:

• Disposable personal income is higher than if the current tax system remains in place: 1.7 percent in year 1, 8.7 percent in year 5, and 11.8 percent in year 10.

• Consumption increases by 2.4 percent more in the first year, which grows to 11.7 percent more by the tenth year than it would be if the current system were to remain in place.

• The increase in consumption is fueled by the 1.7 percent increase in disposable (after-tax) personal income that accompanies the rise in incomes from capital and labor once the FairTax is enacted.

• By the 10th year, consumption increases by 11.7 percent over what it would be if the current tax system remained in place, and disposable income is up by 11.8 percent.

Over time, the FairTax benefits all income groups. Of 42 household types (classified by income, marital status, age), all have lower average remaining lifetime tax rates under the FairTax than they would experience under the current tax system [KR].

Implementing the FairTax at a 23 percent rate gives the poorest members of the generation born in 1990 a 13.5 percent improvement in economic well-being; their middle class and rich contemporaries experience a 5 percent and 2 percent improvement, respectively [JK].

Based on standard measures of tax burden, the FairTax is more progressive than the individual income tax, payroll tax, and the corporate income tax [THBPN].

Charitable giving increases by $2.1 billion (about 1 percent) in the first year over what it would be if the current system remained in place, by 2.4 percent in year 10, and by 5 percent in year 20 [THPDB].

On average, states could cut their sales tax rates by more than half, or 3.2 percentage points from 5.4 to 2.2 percent, if they conformed their state sales tax bases to the FairTax base [TBJ].

The FairTax provides the equivalent of a supercharged mortgage interest deduction, reducing the true cost of buying a home by 19 percent [WM].

ALERT: Kotlikoff refutes Bruce Bartlett's shabby critiques of the FairTax.

 

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