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Davis supports replacing income tax with national sales tax

January 25th, 2007 8:06 pm by Hank Hayes



Republican U.S. Rep. David Davis is one of about 40 co-sponsors of legislation to replace the federal income and payroll tax system with a national retail sales tax.


The bill to promote a national "Fair Tax" has been introduced in each session of Congress since 1999 but hasn't moved close to evicting the nation's existing tax system.


It isn't expected to move forward this year because the bill apparently does not have the support of the Democratic leadership in Congress.


But Davis, R-Tenn., said in a prepared release Thursday that it is time to open up a debate about America's tax system.


"Our federal tax code has become a national nightmare, almost 15 times the size of ‘War and Peace,' with over 7 million words," Davis said. "Tax paying Americans deserve a tax code that they can understand and tax laws that do not require them to spend hours upon hours and days upon days preparing their taxes with a code that inflates yearly.


"Tax reform will not be a simple subject for the Congress to undertake, but it is a conversation and a debate that must occur. I have added my name onto (the bill) as a call to begin this discussion, and I look forward to a healthy debate considering all of the legislative options to reform our tax laws."


According to Davis, the Fair Tax plan is a comprehensive proposal that replaces all federal income and payroll taxes with a national retail sales tax collected by existing state sales tax authorities. This legislation also abolishes all federal personal, gift, estate, capital gains, alternative minimum, Social Security, Medicare, self-employment and corporate taxes.


The bill, introduced by U.S. Rep. John Linder, R-Ga., also abolishes the Internal Revenue Service.


Opponents of the bill assert that the tax would hurt middle-class workers.


For more about the bill go to http://linderfairtax.house.gov.


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