KING TESTIFIES AT HOUSE WAYS AND MEANS HEARING ON FAIRTAX
WASHINGTON - U.S. Congressman Steve King (IA-05) today testified to the House Ways and Means Committee Select Revenue Measures Subcommittee. The subcommittee convened a hearing to dicuss proposals to reform the federal tax system. King was one of a small group of Members of Congress who testified before the committee. He listed the benefits of finally eliminating the IRS and adopting a FairTax.
Following are excerpts of his prepared remarks:
"Unlike these proposals which are intended to simply tinker with our broken income tax code, H.R. 25, the FairTax Act, offers the American people a complete departure from the way we've been taxed in the past. This one bill will completely alter the federal government's tax collection practices, taxing consumption rather than production. By doing this, we could completely untax productive behavior in the United States and give Americans all the incentive in the world to earn all that they can, invest all that they can, save all that they can, keep all that they wish, and decide when and how much to pay in taxes each year."
"With a shift of taxation from productive behavior to consumption, Americans will be able to take home their entire paycheck. This will have a large stimulus effect on our economy. Not only will Americans have more money to spend, they will have more money to save and invest-which will give American businesses more access to capital. This, in turn, will allow greater investment in research and development and allow for economic expansion throughout every sector of our economy.
"H.R. 25 is called the FairTax because it is truly that-FAIR. Every American will be treated exactly the same at the tax register. I will submit that there is no better way to ensure that the role of the federal government in our lives is minimized and our own individual freedom is maximized.
