Ted recently had a letter to editor posted in the Daily Record – Morristown NJ local paper – again regarding the Fair Tax. Below is the letter and link along with comments that followed on-line. I invite all to join this debate and answer one question Ted raises:
Main argument here is that current tax system unfairly benefits large corporations. I propose the fair Tax as a remedy. To all readers – please propose your remedies, would love to read about them.
Alex Pugliese is absolutely correct in his letter stating that “Capitalism works, when not playing favorites.” The current tax code by itself is a huge impediment to a more free market capitalist economy. Approximately $900 billion of annual corporate and individual tax deductions are of dubious value to economic growth. Many of these tax deductions are for large corporations. This mainly insulates them from threats from new, small, innovative companies. As a result our economy staggers. Clearly tax reform is needed.
The most promising tax reform alternative is the Fair Tax, now in Congress as HR25. It eliminates all personal and corporate income taxes, deductions and breaks, regressive payroll taxes, the IRS, and gruesome $430 billion annual compliance cost. It replaces that with a revenue neutral consumption tax on new products and services.
All will receive monthly prebates up to the poverty level to offset the consumption tax and render a progressive tax structure. Results will include domestic and foreign entrepreneurs investing in new industries, companies, jobs, thereby creating more wealth for all. To learn more please visit www.fairtax.org.