Congressman Mike Ferguson on the Fair Tax
- Here is a reply from Congressman Mike Ferguson (R)
(NJ-07), on the Fair Tax. He does not commit to it,
but he does not oppose it. I think Mr. Ferguson does
not want any mis-information about the Fair Tax to
become a campaign issue against him in 2008. At least
his staff now has read the bill. I shall reply to his
citation of opposing views shortly, but these views do
not appear to be the Congressman's.
From:"The Office of Representative Mike Ferguson"
Subject:Re: IMA MAIL ON TAX
Date:Thursday, March 01, 2007 3:06:46 PM
Thank you for contacting me regarding H.R.25, the Fair
Tax Act of 2007. I appreciate hearing from you and
having the benefit of your views.
Rep. John Linder (R-GA), on January 4, 2007,
introduced H.R. 25, which would establish a national
sales tax to replace other taxation methods,
including income, employment, estate, and gift.
H.R. 25 is meant eliminate the confusing Tax code and
increase revenue based on spending. Supports feel
like this will be the solution to the Social Security
and Medicare funding shortfall. However, opponents
believe the will unfairly pinch the middle class into
paying more taxes.
Specifically, H.R. 25 renames the Internal Revenue
Code of 1986 to the Internal Revenue Code of 2007. In
doing so, the legislation also repeals the federal
income, employment, estate, and gift taxes. The
revenue for the federal government would instead come
from a national sales tax. The sales tax would tax
all property and service that are consumed or used in
the United States. Businesses, investors, and State
governments would be exempt from such tax. Also,
individuals below the poverty line would be able to
receive monthly reimbursements for their spending.
The legislation would eliminate the Internal Revenue
Service altogether and replace it with two bureaus for
administrative purposes, which would be placed inside
the Treasury Department. The two bureaus are the
Excise Tax Bureau and the Sales Tax Bureau (to
specifically monitor the national sales tax).
State Governments would be charged with the
collection, accounting and administration of the
national sales tax. The revenue would be directed to
the Treasury to be allocated into one of four
accounts: the general revenue fund, the insurance
trust fund, the disability trust fund, and the federal
supplementary medical insurance trust fund.
Should H.R.25 reach the House floor for a vote, I will
reflect further on your well-stated views.
Again, thank you for taking the time to share your
opinions with me and please visit my website at
www.house.gov/ferguson for more information on
issues important to New Jerseys 7th Congressional District.
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