As you recall, luridtransom sent an inquiry to Sens. Hutchison and Cornyn about the mortgage interest deduction as follows: Please tell me whether you are FOR or AGAINST keeping the mortgage interest deduction status quo.
Senator Hutchison is aware that mortgage interest is deductible, but she refuses to answer the inquiry. All she knows is she will “continue to review recommendations aimed at addressing our nation's mounting debt.” luridtransom will present Sen. Hutchison with an official Goldbrick Award when we run into her at Rick Perry’s Prayer for America Extravaganza in Houston on August 6th.
Senator Cornyn, however, gets a luridtransom Tip of the Cap for answering our inquiry and providing an ACTUAL IDEA. Are you listening, Lamar? Look, we’re not saying Cornyn’s idea is a good one, and we’ve got some questions about it (stay tuned), but at least it’s an idea. Here you go, America, Senator Cornyn’s 23% federal retail sales tax idea:
Dear luridtransom:
Thank you for your recent letter regarding efforts to simplify federal tax laws. I appreciate having the benefit of your comments on this matter. Uhhh, that’s not exactly what the letter was about, but we’ll look the other way on that.
The Internal Revenue Code is unnecessarily complex and is an impediment to economic growth at a time when the United States faces more competition from India, China, and Europe than ever before. According to the National Taxpayer Advocate, Americans spend $193 billion per year filing their taxes. This is equivalent to a surcharge of 14 percent of all income taxes collected. In addition, tax-code changes have averaged one per day over the past eight years, with 500 changes in 2008.
In response to these challenges, the Fair Tax Act, which I was proud to co-sponsor, was introduced in an effort to replace the federal income tax—including capital gain taxes, all payroll taxes, the estate and gift tax, and corporate and self-employment taxes—with a 23 percent federal retail sales tax. This tax would be collected at the final point of purchase of new goods and services for personal consumption. Additionally, the Fair Tax Act provides a universal rebate in an amount equal to the sales tax paid on essential goods and services, to ensure that no American pays taxes on the purchase of necessities. Finally, the Fair Tax Act would eliminate the Internal Revenue Service as we know it today, ending the convoluted tax-filing process.
It is important to provide taxpayers with a simple, fair method of funding their federal government. By converting to a tax system that is transparent and simple, the United States would remove the complex tax burden for hardworking families, strengthen our financial system, and ensure that our economy remains the strongest in the world.
I appreciate having the opportunity to represent the interests of Texans in the United States Senate, and as a member of the Senate Finance Committee, you may be certain that I will keep your views in mind should efforts to reform the tax code be considered during the 112th Congress. Thank you for taking the time to contact me.
Sincerely,
JOHN CORNYN
United States Senator
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