Our tax system doesn't work. According to the Joint Committee on Taxation in 2009, 51 percent of American households paid no income tax. Bloomberg news reported, "The number of people who reported incomes of at least $200,000 and paid no U.S. income taxes jumped 79.5 percent in 2008 from 2007, according to an Internal Revenue Service study."
The case for comprehensive tax reform could not be clearer. When the only path to reducing your tax bill is determined by your ability to figure out how you might qualify for a credit, deduction or loophole, Congress must act.
House Majority Whip Kevin McCarthy talked about the economy June 21 on Fox News. McCarthy said, "First thing we should do is reform the tax code."
The fair tax is the most obvious choice for a new tax system.
The fair tax offers these positives: simplicity; fairness -- everyone pays the same rate; neutrality -- it does not pick winners or losers; visibility -- it's printed on every receipt; stability -- sales tax is the most stable source for government revenue; efficiency -- it reduces tax filers by 90 percent. It also fosters economic growth by ridding us of the massive costs and paper chase every year caused by our 72,000-page tax code.
Since the recession began Texas has created one third of all new jobs in the U.S. Texas does not have an income tax. If you think a flat income tax is good, you really should compare it to the flat sales tax, the fair tax.
Wisconsin liaison officer,
Americans for Fair Taxation,
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