Tax Reform Can Help Jump Start Jobs

Statement

Last Friday we observed this year's "cost of government day." In other words that was the day the average American had earned enough gross income to pay their federal, state and local taxes and regulations for the year. It was the 224thday of the year, which is 27 days longer than it was in just 2008.

That is why I support the Fair Tax. It would eliminate the federal income tax and taxes on social security, capital gains, FICA, gifts and the much maligned alternative minimum tax. Instead taxpayers would be charged a single rate on new goods when they are purchased.

Your paycheck would no longer have taxes deducted from it by the federal government. April 15thwould become just another day as the yearly ritual of trying to get your taxes filed on time would end.

Instead of paying taxes on your income, you would pay taxes on what you buy. A monthly prebate would cover the consumption tax spent on necessities up to the federal poverty level.

This would flatten the tax code by ending special deductions. It would also broaden the tax base to include everyone- even the underground economy that escapes taxation today. This would help lower the tax burden, while giving the government enough money to operate.

This kind of tax reform would spur economic growth as people spend their own money rather than working for 224 days to pay the government. We need a tax code that is simple, fair and promotes economic growth.

Sincerely,

Sam Graves

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