I noted with interest the letter to the editor from Mr. Ed Outlaw with his concerns for the Fair Tax plan. I have promoted the Fair Tax for several years now, and I have rarely come across anyone that was such a proponent of the present tax system. The Income Tax is out of control, inefficient, and penalizes U.S. business and manufacturing competing within an escalating global economy. The Fair Tax is a simple alternative method to fund the Federal Government that is fair, simple, and visible. As a by-product, it just happens to solve some very serious economic problems that are caused by the present Income Tax.

I find it interesting that Mr. Outlaw listened to a 20 minute presentation on the Fair Tax and came away “convinced” that the plan was bad. His main concern seemed to revolve around whether the plan was “progressive”. By every definition that I could find, the Fair Tax plan is progressive because of the “prebate” given to each family. No one will have to pay Federal taxes on their basic needs. The more money that you spend above the poverty level, the more the effective tax rate you pay. No one’s total tax obligation will ever exceed 23%. The debate is how progressive do you want it to be, and there are infinite opinions on that issue. I suspect that Mr. Outlaw suffers from the “Sin of Envy”. Arguing that some should pay more because they took advantage of the opportunities available to everyone is the same as saying that we should limit a person’s educational opportunity because they would have an unfair advantage over someone that dropped out of High School.

The Fair Tax benefits poor and middle income Americans. The largest tax impact on lower income Americans is the payroll tax. The Fair Tax eliminates Medicare and Social Security withholding. In fact the Presidential Tax Advisory Panel issued a statement last summer that the Fair Tax was the only plan presented to them that “totally untaxed the poor”. It benefits all but the people that have been avoiding taxes, either legally or illegally in the past. Plus, you never have to maintain tax records, file tax returns, or worry about the IRS seizing homes or accounts.

The Fair Tax will return this country to one envisioned by the founding fathers. The Constitution specifically forbids an income type tax to fund the Union. In Federalist Papers 21, Alexander Hamilton explains that they were afraid that an income type tax would “of itself be sufficient in America to work the eventual destruction of the Union” whereas, a consumption tax “contain in their own nature a security against excess”. He also stated that a consumption tax would be like a fluid and would reach it’s own natural balance.

I believe that Mr. Outlaw is consumed with many issues and chose the Fair Tax as a vessel to vent. The Fair Tax plan is apolitical and was developed by the American people and academia outside of Washington. I challenge anyone to start from scratch and develop a tax plan that is simpler and fairer to all Americans.

Gene Key
Fayetteville, GA

revenues increased! Deficit went up cause SPENDING-see Tip O'Neil-went up. So according to you-getting a pay raise puts you in debt.

Ed Outlaw says "But, even if you accept that they should (pay higher taxes), individuals with higher incomes are those that have most benefited from our government."

"....those that have benefited the most from government???

The way it works, Ed is most of those with higher incomes have worked hard and earned what they did in spite of governmental regulations, roadblocks and excessive taxation. Those with little or no income (excepting those with real disabilities) have not applied themselves or taken advantage of the educational and vocational opportunities this country has to offer. These people (everyone actually) get a free education in our public schools, yet many drop out early and blame "the system" for their sorry lives, then demand government handout money.

As a bleeding heart Democrat, Ed you actually support and encourage that activity and the victim mind set that goes along with it.

The Fair Tax proposal is great - even without the "prebate" That prebate was thrown in so people like you wouldn't wring their hands and agonize over the "poor" people. I think the prebate is a waste of money, but realistically it has to be paid (as a bribe to the Democratic inner city legislators) in order to get the Fair Tax passed in Congress.

Push for the Fair Tax everyone, it is a real win-win solution and best of all gives us control of our own future.

Ed just happens to be a TAX CONSULTANT.

Does his occupation, suddenly put in jeopardy if the IRS is dissolve have anything to do with his opinion?

Alternate explainations can be made for the following:

1) the federal debt has increased from under $1 trillion in 1979 to over $8 trillion now. Cars that sold for $10,000 in 1979 now sell for $20,000. Inflation and unbridled pork spending could also be the problem not the tax system. Individuals must live within a budget, goverment sadly seems not to.

2) poverty levels have increased from 11.7 percent in 1979 to 12.7 percent in 2004. Maybe all those uneducated illegal aliens have had a negative impact on this stat.

3) the division of wealth has increased. Maybe the rich keep doing the things that make them rich and the poor keep doing the things that make them poor.

Bottom line, I can use my money better that the Government can. If I could opt out of Social Security, like the City of Galveston did, my retirement check would be 2 to 3 times larger!

Support the Fair Tax!