Sir:
I am aware of the fact that Georgia is among the many states in the nation facing a financial crisis. We have rising unemployment, a mounting deficit, and falling tax revenues. I spoke with someone in your office today about what I believe may be the solution: A Georgia state version of the FAIR Tax.
If you are unfamiliar with the FAIR Tax, you can find the details at www.fairtax.org. In short, it is a consumption-sales tax that would replace all other state taxes. I believe that it has several advantages that could be immediately recognized.
First, it would provide a favorable tax climate that would attract new business to the state. By eliminating the state income tax on corporations, the Georgia FAIR Tax would draw businesses from other states with higher tax rates. The publicity of being the first state to adopt the FAIR Tax would also be a boon to Georgia's economy.
Second, the monthly pre-bate feature of the Georgia FAIR Tax would help families with breadwinners who are unemployed or earning low incomes. The fact that the FAIR Tax is not applied to used items, but only to new products, would also provide much needed breathing room to many families.
Third, the Georgia FAIR Tax would eliminate state income tax withholding and leave more money in the pockets of Georgia consumers. If consumers have more take-home pay, they will be able to spend more, which will ultimately help to restart the economy.
Finally, because the Georgia FAIR Tax would be paid by anyone who shops in Georgia, it would increase the tax base. Out-of-state residents, vistors, illegal aliens, and others who currently do not pay taxes in Georgia would become part of our tax base. This would ease the tax burden on Georgia families.
Since the FAIR Tax is the brainchild of Georgians John Linder and Neal Boortz, it is only logical that Georgia become the first state to adopt it. Experiments in Ireland and the former eastern bloc countries of Europe have shown the power of tax reform in stimulating economies. I hope that you will consider sponsoring this legislation in Georgia, both to revitalize our economy and show the rest of the United States the way.
Sincerely,
David W. Thornton
No comments:
Post a Comment