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Tax Reform Report Card Released

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  • Genie Hayes
    To: Tax Reporters, Political Reporters, National Desk, and Assignment Editors Contact: David Burton 1-800-FAIRTAX Date: February
    Message 1 of 1 , Feb 1, 2006
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      To:               Tax Reporters, Political Reporters, National Desk, and Assignment Editors

      Contact:       David Burton 1-800-FAIRTAX

      Date:            February 1, 2006

       

       


      Tax Reform Report Card Released

      Analysis Shows FairTax is Best Plan

       

      Washington, D.C. (February 1, 2006) – The FairTax is the most advantageous plan for the economy and for small business and is the most fair plan according to analysis provided today by Americans For Fair Taxation (FairTax.org) in testimony by David R. Burton before the House Small Business Committee.  The analysis compared the FairTax to the flat tax, a business transfer tax, and the two proposals developed by the President’s Advisory Panel on Federal Tax Reform using the 12 key factors.  The analysis is summarized in a “Tax reform report card.”

       

      “The FairTax is the most desirable plan being considered.  It is extremely pro-growth.  It would cause dramatically higher investment, large productivity gains, and higher real wages.  It would improve the competitiveness of U.S. producers.  It would improve the well-being of the average American dramatically,” said David R. Burton, a partner in the Argus Group and spokesman for FairTax.org.

       

      The FairTax would replace all federal income taxes, all payroll taxes, estate and gift taxes, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes with a simple national retail sales tax on all consumption.  All households would be provided with a monthly sales tax rebate that protects all households from tax on spending up to the poverty level.  The FairTax is progressive.  It treats all persons, goods, and services alike.

       

      “The current system has a disproportionately adverse impact on small businesses because of the high compliance costs that consume a relatively large share of small business income and because of the many ways the current system singles out small businesses for discriminatory tax treatment.  The FairTax addresses this issue by radically simplifying the tax law, reducing compliance costs and compensating businesses for their time complying with the system,” said Burton .

       

      Report card follows.

       

      Additional information is available at www.FairTax.org.

       

      Full testimony including the analysis is available from FairTax.org.

       

       

      - 30 -


      Tax reform report card

       

      Tax Panel Income Tax

      Neutral toward savings and investment                    C  

      Low marginal tax rates                                            C

      Neutral between foreign and U.S. producers           F

      Taxes economic activity uniformly                            C+

      Neutral between human and physical capital            F

      Reduces compliance costs                                       C-

      Untaxes the poor                                                    B

      Equal and uniform taxation                                      D

      No loopholes or special exemptions                        D

      Transparent and understandable                              C

      Politically stable                                                      F

      Structure in place to transition to                              A

      Overall grade                                                          D

       

       

      Tax Panel Growth

      Neutral toward savings and investment                    C+

      Low marginal tax rates                                            C

      Neutral between foreign and U.S. producers           A

      Taxes economic activity uniformly                            C+

      Neutral between human and physical capital            F

      Reduces compliance costs                                       C

      Untaxes the poor                                                    B

      Equal and uniform taxation                                      D+

      No loopholes or special exemptions                        D

      Transparent and understandable                              C

      Politically stable                                                      D

      Structure in place to transition to                              A

      Overall grade                                                          C

       

       

      Flat tax

      Neutral toward savings and investment                    A

      Low marginal tax rates                                            B+

      Neutral between foreign and U.S. producers           D

      Taxes economic activity uniformly                            A-

      Neutral between human and physical capital            F

      Reduces compliance costs                                       B

      Untaxes the poor                                                    B-

      Equal and uniform taxation                                      B

      No loopholes or special exemptions                        A-

      Transparent and understandable                              B

      Politically stable                                                      C

      Structure in place to transition to                              B

      Overall grade                                                          B

       

      Business transfer tax

      Neutral toward savings and investment                    A+

      Low marginal tax rates                                            A-

      Neutral between foreign and U.S. producers           A+

      Taxes economic activity uniformly                            A-

      Neutral between human and physical capital            F (in most cases)

      Reduces compliance costs                                       B

      Untaxes the poor                                                    B-

      Equal and uniform taxation                                      B+

      No loopholes or special exemptions                        A-

      Transparent and understandable                              B-

      Politically stable                                                      B

      Structure in place to transition to                              B

      Overall grade                                                          B+

       

       

      FairTax

      Neutral toward savings and investment                    A+

      Low marginal tax rates                                            A+

      Neutral between foreign and U.S. producers           A+

      Taxes economic activity uniformly                            A

      Neutral between human and physical capital            A

      Reduces compliance costs                                       A+

      Untaxes the poor                                                    A+

      Equal and uniform taxation                                      A+

      No loopholes or special exemptions                        A+

      Transparent and understandable                              A+

      Politically stable                                                      A

      Structure in place to transition to                              B+

      Overall grade                                                          A+

       

       

       

       

       

      Genie Hayes

      genie@...

      1-800-FAIRTAX #9608

       

      Join us for a local meeting: http://www.fairtax.org/conferences.html

      "A good leader inspires people to have confidence in the leader; a great leader inspires people to have confidence in themselves." --Anonymous

       

       

       

       

       

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