CATS E-Briefing
Citizens for an Alternative Tax System
2020 Pennsylvania Ave., NW, #423
Washington, DC 20006
800-767-7577
www.cats.org
CATS E Briefing 4 August 2001
H.R. 2717 - Individual Tax Freedom Act of 2001
Late in the day on Thursday, 2 August, H.R. 2717, "The Individual Tax Freedom Act of 2001" was filed by Congressman Billy Tauzin (R-LA). Congressman Tauzin -- "We are focusing our sights on abolishing America's punitive federal income tax and the dreaded Internal Revenue Service. Americans are becoming increasingly fed up with the income tax system and are fighting back."
Cosponsor of the Bill is James Traficant (D-OH), who has consistently come down on the side of taxpayers. At the time of filing, the following were also signed on as cosponsors: Bob Barr (R-GA), Kevin Brady (R-TX), Dan Burton (R-IN), Sonny Callahan (R-AL), Calverson (R-TX), DeMint (R-SC), and Ralph Hall (D-TX). More to be added in the following day.
H.R. 2714 -- "The Date-Certain Tax Code Replacement Act", was also filed on Thursday by Congressman Steve Largent. The bill would sunset the current Tax Code on December 31st, 2005 and would establish a bipartisan Commission to study the problems with our current Code and make recommendations for Congress on a tax reform plan. This is the bill that passed the House and almost passed the Senate in an earlier version.
In the month of August, Congress is on a break and everyone will be in their district office. Please call your Congressman and tell them you support "The Individual Tax Freedom Act" (H.R. 2717) and tell them to sign on as a cosponsor and support this move to the National Retail Sales Tax. Find out if they will be holding town hall meetings and show up to ask the question in public.
Glenn Wahlquist
Director of Operations
CATS National Office
NRSTC Applauds Rep. Tauzin
The National Retail Sales Tax Coalition (NRSTC)
News Release: August 2, 2001
Contact: Rob Hartwell – 202-822-4501
New National Coalition Applauds Bipartisan Tauzin-Linder Sales Tax Bills
Momentum Builds as Rep. Tauzin Introduces Bill -- Administration Plans Fundamental Tax Reform
A newly formed national retail sales tax coalition, led by national taxpayer, small business and agriculture groups, announced today its support for the growing legislative and taxpayer movement supporting enactment of a national sales tax. “We applaud today’s introduction of the Individual Tax Freedom Act and see it as a major step toward real consideration of the sales tax by the Administration and the Congress,” said Rob Hartwell, a spokesman for the group.
“Our organization, Americans for Fair Taxation, specifically endorses H.R. 2525 introduced by Rep. John Linder (R-GA) and Collin Peterson (D-MN). But the introduction of another bipartisan sales tax bill by Energy and Commerce Committee Chairman Billy Tauzin (R-LA) proves there is growing momentum to scrap the inefficient and counter-productive income tax and do something that makes sense,” Hartwell added.
Todd McCracken, President of National Small Business United added, “Chairman Tauzin’s bipartisan legislation is a product of the frustration American Small Business suffers from a tax system that penalizes work, savings, jobs and prosperity. The majority of Small business groups now support a sales tax because our current tax code disproportionately penalizes business owners struggling to create the American dream and leave a productive legacy for our future.”
John Berthoud, President of the 335,000-member National Taxpayers Union, which recently endorsed the Linder-Peterson bill, called the Tauzin bill “one of our brightest hopes for freeing American taxpayers from the tyranny and oppression of the income tax. The Bush Administration has heard our call for fundamental tax reform and we encourage its review of national sales tax legislation as an ideal alternative to a failed income tax system.”
NRSTC Steering Committee:
Pat Wolff
American Farm Bureau Federation
Robert Hartwell
Americans for Fair Taxation
Steve Hayes
Citizens for an Alternative Tax System
Neal C. White
National Retail Sales Tax Alliance
John Berthoud
National Taxpayers Union
Todd McCracken
National Small Business United
NTU Endorses Sales Tax
National Taxpayers Union
July 23, 2001
The Honorable John Linder
1727 Longworth House Office Building
Washington, DC 20515
The Honorable Collin Peterson
2159 Rayburn House Office Building
Washington, DC 20515
Dear Congressmen Linder and Peterson:
On behalf of the 335,000-member National Taxpayers Union (NTU), I write to offer our endorsement of H.R. 2525, the FairTax, and to urge all Members of Congress to join as cosponsors. Should H.R. 2525 come before the House for a vote, it will be heavily weighted in our annual Rating of Congress.
America’s present Tax Code is extremely punitive and complicated, taking more from American taxpayers than ever before. The current Tax Code is clearly not what the nation envisioned when it ratified the 16th Amendment nearly 100 years ago.
Initially, rates were extremely low. In fact, the tax rate on the first $20,000 of income was a mere one percent, while the highest rate was still a fairly reasonable seven percent on all income above $500,000. In 2001 dollars, that would equate to a one percent income tax on all income up to $300,270 while the seven percent rate would apply only to income earned above 7.2 million dollars. Clearly, our current system of extreme progressivity would come later. In fact, as late as 1939 only five percent of the population was required to file income tax returns.
Today, the federal income tax is extremely “progressive” in the worst possible sense of the word. Dangerously burdensome on both the taxpayer and the economy – and maddening in its complexity – it has become a detriment to America’s economy.
While the extreme progressivity of income taxes is inherently unfair and unquestionably slows our economy dramatically, the regressive nature of our current payroll taxes unquestionably hurts those who can least afford to pay them. As you are aware, while the poor in America may not pay excessive income taxes, they are taxed excessively by payroll taxes.
Because your FairTax would replace both the income and payroll taxes with a simple, fair, 23 percent sales tax with monthly rebates, it would greatly benefit all Americans and our national economy.
Most Americans agree that our current Tax Code is in desperate need of reform. We salute you for your effort to bring about such reform and urge your fellow Members of Congress to join you in this effort by working to pass H.R. 2525.
Sincerely,
Eric V. Schlecht
Director,
Congressional Relations
National Taxpayers Union
World Taxpayers Unite
Replace Income Taxes with
Consumption Taxes
World Taxpayers Associations
39 Member Associations from 34 Countries on 6 Continents - a united front for lower taxes, less waste, accountable government and taxpayers rights the world over.
World Taxpayers Associations is a non-profit organization officially established at the Foreign Press Club in Washington D.C., USA, on September 29, 1988, to join the fight for lower taxes. Until 2000 the name of the organization was Taxpayers Associations International.
President of the organization is Mr Björn Tarras-Wahlberg, former President of the Swedish Taxpayers Association for 16 years. The organization is registered in Sweden with offices in Bruselles (Belgium), Paris (France), Stockholm (Sweden) and Washington D.C. (USA).
Resolutions of 2001
Replace Income Taxes with Consumption Taxes
We, the Members of the World Taxpayers Associations, an organization comprising 37 member associations from 32 countries on six continents, hereby find that:
many countries with higher taxes on productive activity - work and investment - have lower rates of economic growth, and
the income tax has been shown to be one of the most economically destructive types of tax, and
- countries that can redirect consumption towards investment will have higher growth in the long-run.
Therefore, be it resolved:
the Members of the World Taxpayers Associations applaud efforts in some countries to eliminate all taxes on income from work or investment and replace these taxes with a tax on consumption such as a national sales tax, and also applaud efforts to reduce income taxes in countries that do not completely eliminate income taxes, and
we strongly believe that all taxes must be visible to taxpayers. Politicians can not be allowed to impose taxes that are invisible to the public, and
in particular, we support the efforts of proponents of the “Fair Tax” in the United States of America. We believe that if countries would end their taxes on productive activity and adopt proposals such as the Fair Tax, they would see immediate marked increases in economic growth and development and the lives of all citizens would be bettered, and
- for countries that do not replace their income taxes with a visible consumption tax, we suggest the alternative tax reform of a low flat income tax with a large personal exemption.
Agreed to unanimously by the Members’ meeting
of
the World Taxpayers Associations
June 14, 2001, St. Louis, Missouri, USA
Note from Bracken:
Well, it appears that taxpayers around the world are getting fed up with "income taxes".
Added to this, people are finally waking up to the insidious "hidden taxes" which are always present with any system which taxes business, whether by the use of an income tax or a "Value Added Tax" (VAT).
I applaud "The World Taxpayers Assosiations" for adding their support to the "National Sales Tax" idea.
Well, it's beginning to look like there are only a few people remaining who do not quite understand all of this. Ironically, those few people are the ones who can do something about this. The people I'm talking about are your elected representatives in Congress. That's right...your Senators and Representative. And don't forget the President.
So, now would be a good time to write each of them a letter. What are you waiting for? (see: What You Can Do)
Thanks for your help in getting this done.
D.P. "Bracken" Bracken
Chairman, CATS Las Vegas Chapter
