"Sports Week" at the Arizona Legislature was a rousing success. Monday,
the Diamondbacks pulled out a win in the home
opener against Cincinnati; Tuesday, the House
beat the Senate in the 30th annual softball game;
and Wednesday, I came away from the charity bowling
as the highest female scorer for the two games
-- rolling a 125 and 127. Not bad for someone
who hadn't bowled in a very long time, but I'll
be keeping my day job.
I stayed in Phoenix this weekend (Paul and Candy were in California and I had
no commitments in Bullhead City), so I was able to attend an AZ Republican Party
dinner on Friday. The featured speaker was Congressman John Linder of Georgia
who spoke on his proposal for what he calls the "Fair Tax." This is a national
sales tax that would eliminate all other forms of taxation -- income, social
security, Medicare, capital gains, estate, etc. -- and the Internal Revenue Service. Consumers
would become what he describes as "voluntary taxpayers," being taxed on only
what they choose to purchase. Nothing is exempt, including food, cars and
housing. But every household in the country would receive a monthly check
for the estimated amount of tax on necessities. Congressman Linder states
that the hidden taxes in everything that we purchase amount to 22% of its cost;
the retail tax to be collected would be 23%. This seems steep, until you
consider that most people pay over 30% of their income in payroll and income
taxes.
My question to Mr. Linder was: if companies are not paying the 22%, why
does he believe they would pass that savings on to their customers? His
answer was that many might not, hoping to keep the additional revenue; but over
time competition would force prices down. We would therefore be paying
little more for goods and services than we do now and none of the other taxes.
Everyone knows the U.S. tax code is a confusing mess and must be simplified in
some way. I have been a proponent of a flat tax -- everyone taxed at 13-15%
of their income, with no exemptions or deductions. But the Congressman
makes a good point that with the "fair tax" the burden of taxation is shifted
from income to consumption. If the government doesn't know, and has no
need to know, how much anyone is earning, it won't be tempted to start messing
with the tax code again.
It's an interesting concept, but one that I don't see being implemented anytime
soon. But if you come across the book he has co-written or hear about someone
who is speaking on this issue, I believe it would be worth your time to investigate.
I may have found a way to get HB2595 dealing with amateur radio accommodation
back in play after its being denied a hearing in the Senate Government committee. I've
found a Senate bill that is still in House Rules to which my bill can be attached
as an amendment in Committee of the Whole. I'm still checking to see what,
if any, opposition there will be and should know for sure on Monday.
I've learned a lot in the past two years -- and am certainly still learning --
about the legislative process. It's a challenge, and really quite fun sometimes.
Until next week,
.
Nancy McLain