Thursday, June 15, 2006

Plan would change federal tax system

"Astronomical" economic growth would be the result if the United States adopts a new federal tax system, Dan Mastromarco said during a breakfast and forum on the Fair Tax initiative this week sponsored by the Greater Colorado Springs Chamber of Commerce.

Mastromarco is the author of a proposal now before Congress to eliminate almost all other federal taxes in favor of a sales tax. According to Mastromarco, the benefits of the proposal are
Americans would take home their entire paycheck (minus state income tax), paying federal tax only on the purchase of new goods and services.

The proposal is revenue-neutral, generating the same amount of government revenue as the current tax system. For more details about the Fair Tax initiative, go to www.fairtax.org.

1 comment:

cosguy27 said...

The IRS is an outdated institution that is not very efficient. A new system is needed, and the VAT, like one used in Europe, is a good way to get there. Control as to how the rate could be raised needs to be addressed. The USA VAT should be included in the item price to simplify the process.