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SENATOR CHAMBLISS AND REPRESENTATIVE LINDER LEAD EFFORT TO OVERHAUL TAX SYSTEM
April 7, 2004
U.S. Senator Saxby Chambliss (R-GA) and U.S. Representative John Linder (R-GA) are leading a bi-partisan and bicameral effort to provide much needed tax relief to all Americans. Senator Chambliss and Representative Linder discussed their legislation at a news conference today at the state Capitol in Atlanta.
Referred to as the FairTax (S. 1493 and H.R. 25), this legislation would shift the federal government’s method of funding operations 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 current tax code is ridiculously complex and desperately needs a major overhaul,” said Chambliss. “As April 15th approaches, it’s painfully clear that simply tinkering with the current system is no longer an option. The FairTax is a fairer, simpler tax code that allows every American the freedom to determine his own priorities and opportunities.”
Representative Linder thanked Senator Chambliss for introducing a companion bill in the Senate saying that this marked “a major step toward reforming our broken tax system.”
“I’ve introduced the FairTax in the last three Congresses and I am more encouraged than ever that we are even closer to making it a reality,” Linder said. “There is a desire to get rid of the intrusive IRS and implement a system that will generate economic growth and help create new jobs.”
Senator Chambliss and Representative Linder outlined eight principles that they believe should be considered when debating tax reform, all of which the FairTax addresses:
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.
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