October 23, 2004
Text Only
|
|
| October 6th, 2004 |
Contact: Gretchen Learman
|
|
|
CONGRESSMAN LINDER TESTIFIES BEFORE HOUSE BUDGET COMMITTEE
|
| |
Washington, D.C. - Today, Congressman John Linder (R-GA) testified before the House Budget Committee. Congressman Linder discussed fundamental tax reform generally, and his legislation, H.R. 25, specifically.
“I am pleased to have the opportunity to testify before the House Budget Committee today about the need for fundamental tax reform and my bill, H.R. 25,” Linder said. “We need a tax plan that is easy for all Americans to understand, allows U.S. companies to be more competitive overseas, strengthens Social Security, and unleashes America’s economic engine.”
In his testimony, Congressman Linder outlined eight key principles he believes Congress must consider when debating any fundamental tax reform proposal. These principles are:
1. Fairness: It must protect the poor and treat everyone else the same. No exemptions – no exclusions – no advantages.
2. Simplicity: It must be easy to understand for all Americans – no matter one’s education, occupation, or station in life.
3. Voluntary: It must not be coercive or intrusive.
4. Transparency: We should all know what the government costs. There must be no “hidden” taxes.
5. Border-Neutral: Our exports must be unburdened by any tax component in the price system, while imports carry the same tax burden at retail as our domestic competition.
6. Industry-Neutral: It must be neutral between businesses and industries.
7. Strengthens Social Security: Fundamental reform must address the long-term solvency of Social Security.
8. Manageable Transition Costs: It must not be costly or difficult to implement.
Referred to as the “FairTax,” Congressman Linder’s bill would shift the Federal government’s funding paradigm from income-based taxes to a personal consumption tax. It would repeal all federal personal income taxes, corporate income taxes, payroll taxes, self-employment taxes, capital gains taxes, and gift and estate taxes and replace these taxes with a revenue-neutral 23 percent sales tax on all retail sales of new goods and services. The FairTax currently has 54 co-sponsors, more than any other fundamental tax reform bill in Congress.
In addition to taking testimony from Congressman Linder, the Budget Committee listened to testimony from former Majority Leader Richard Armey (R-TX), former Chairman of the House Ways and Means Committee Bill Archer (R-TX), and a variety of House Members about their views on fundamental tax reform including: Congressmen Michael Burgess (R-TX), Phil English (R-PA), Charles Rangel (D-NY), David Price (D-NC), and Max Sandlin (D-TX). Dr. C. Eugene Steuerle with The Urban Institute, Dr. Robert Hall with the Hoover Institution at Stanford University, and Dr. William Gale with The Brookings Institution were also witnesses.
For more information about the FairTax, please visit Congressman Linder’s web site at http://linder.house.gov/.
|
| |
| ### |
| |
| |
| Printable Version |
| |
|
|
|
