Today, Congressman Mike Conaway (R-TX) testified before the House Committee on Ways and Means on the subject of tax reform. The committee held the hearing to listen to proposals from Members of Congress on reforming our federal tax system.
“As a CPA and small business owner, I know how complicated and inefficient our current tax code is,” said Conaway. “Our most important goal, when it comes to tax policy, should be to put in place a tax collection scheme that collects the minimum amount of taxes needed to support the federal government. A national sales tax would simplify our current tax structure.”
The Fair Tax plan (H.R. 25), introduced by Congressman John Linder (R-GA), is a federal tax plan that would eliminate all federal income, payroll, personal, gift, estate, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes. All of these taxes would be replaced with a simple progressive national retail sales tax. The plan includes a tax rebate to ensure that Americans living at or below the poverty level do not pay federal taxes. By taxing only what we choose to spend and not what we earn, the Fair Tax creates a system that is totally transparent and simple to comply with.
Conaway went on to say, "Americans waste over 6.5 billion hours every year filling out tax forms, keeping records, and learning new tax rules. The most effective and efficient tax system is one where the average taxpayer doesn’t need an accountant to file their tax return.”
