\-\-\-\--Original Message\-\-\-\--

From: Nolan Fugal
\[[[mailto:nolan.fugal@naturesway.com]{.underline}](mailto:nolan.fugal@naturesway.com)\]

Sent: Monday, March 21, 2005 4:59 PM

To: comments@taxreformpanel.gov

Subject: Comments to the President\'s Advisory Panel on Federal Tax
Reform

Comments to the President\'s Advisory Panel on Federal Tax Reform

Submitted by: Nolan Fugal

On: March 21, 2005

Category of Submitter: Individual

I was amazed to hear that members of the President\'s Advisory Panel on
Federal Tax Reform feel that there is no \"political will\" to replace
the current income tax system.

The only legislation before Congress that I am aware of that would
replace the income tax is the \"FairTax\" (HR25 and S25). Of the members
of the Senate and House of Representative who have expressed an opinion
on this legislation that is before Congress, 60% are either for or
leaning for the legislation and only 40% are against or leaning against.
That does not sound like lack of political will to me.

I have reviewed all of the comments from individuals that you have
received that I could access. Of those 81% said they would like to get
rid of the income tax. 71% said they would not only like to get rid of
the income tax but that they would like to replace it with a national
consumption tax of some kind.

I did not include in the percentage of those who would like to get rid
of the income tax those who would like to replace it with a flat income
tax because I believe it would only be a matter of time before the
myriad of exceptions and exemptions and multiple rates would be returned
to this \"flat\" income tax.

I strongly support a national sales tax after the fashion of the
\"FairTax\" with the following components:

\* It should be broad based and tax all new goods and services

\* It should eliminate the tax completely on the poor by reimbursing

all taxpayers an amount that would remove the tax to the poverty level
or some level above the poverty level agreed to by Congress.

\* It should replace all federal income taxes, payroll taxes and gift

and estate taxes.

\* It should include the repeal of the 16th amendment to the

Constitution of the United States.

\* It should, at the beginning, be revenue neutral. However, I believe

that within a short period of time, the revenues from this tax would
increase significantly because of the great boon to the economy this
type of taxation would have over the current income and payroll taxes.

Some of the advantages of this type of consumption tax are:

\* It would make compliance significantly easier and less costly for

both the government and the taxpayer.

\* It would eliminate the oppressive IRS.

\* It would greatly improve our competitiveness with foreign

competition.

\* It would improve the visibility of the cost of government.

\* It would get the federal government out of the private lives of the

citizens of the US by eliminating the governments need to know of the
income and expenses of its citizens. This is perhaps the most important
reason for eliminating the repressive income tax.

\* It would tax foreign tourists on their consumption in the US,

thereby broadening the tax base.

\* It would be progressive both because the poor would effectively not

be taxed and because those who have more would tend to spend more and
thus pay more tax.

\* In my opinion, it is much fairer to tax consumption than to tax

\"income\" especially if the income being taxed is so distorted by
exceptions and exemptions.

Nolan Fugal