Issue Position: Tax Reform
Ronald Reagan said, "Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."
Our current tax code is far too complicated and needs to be replaced with a code that is fair and favorable toward saving and investing. I am a co-sponsor of the Fair Tax Act (S. 1025) because I believe it to be far better than our present system.
Each year, Americans waste 5.8 billion hours in order to comply with the 60,000-page tax code. This complex tax code also translates into billions of dollars of annual expenses for individuals and business. The system is broken and the Fair Tax is one alternative that will simplify and improve it.
As you know, the Fair Tax would repeal the burdensome income tax and replace it with a national sales tax. The Fair Tax also would jumpstart our economy by removing the 22 percent cost embedded in American made goods and services because of federal taxes. These embedded costs put American goods at a disadvantage to the goods of almost every other country in the world, making American products less competitive overseas.
The Fair Tax will dramatically reduce prices for consumers, protect Social Security and Medicare and benefit low- and middle-income Americans. Families and individuals will be able to save more for homeownership, retirement, college education and any other expenses.
I also believe President Bush's tax cuts should be made permanent. The federal government does not need more taxpayer money. Instead, the government needs to eliminate waste, improve efficiency and restructure programs that are too costly.