Replace All Federal Taxes on Income with the Fair Tax Act , HR 25

A Little FairTax History and Lore

All,
Here is a little bit of FairTax History and Lore. There were Democrats on the original legislation.

The FairTax was first introduced as the National Retial Sales Tax Act of 1997 by Congressman Dan Schaefer, R, CO-06, on June 19, 1997 in the 105th Congress as H.R.2001. John Linder was one of the original co-sponsors.

There was a related bill, H.R.1325, which had the same sponsor and same title, all of its 10 co-sponsors (including John Linder) in common, similar subject matter, and was introduced, appropriately, on APRIL 15, 1997. I am speculating that 1335 lost steam and was overtaken by 2001 - but 1335 was never formally withdrawn.

The co-Sponsors of H.R.2001, and the dates they signed on, are:
Rep Barcia, James A. (D) [MI-5] - 6/25/1998
*Rep Bono, Sonny (R) [CA-44] - 6/19/1997
Rep Brady, Kevin (R) [TX-8] - 10/1/1997
Rep Callahan, Sonny (R) [AL-1] - 2/3/1998
Rep Campbell, Tom (R) [CA-15] - 10/21/1997
Rep Chenoweth, Helen (R) [ID-1] - 7/22/1997
*Rep Hall, Ralph M. (R) [TX-4] - 6/19/1997
*Rep Hefley, Joel (R) [CO-5] - 6/19/1997
Rep Hunter, Duncan (R) [CA-52] - 3/11/1998
*Rep Linder, John (R) [GA-11] - 6/19/1997
*Rep Myrick, Sue Wilkins (R) [NC-9] - 6/19/1997
*Rep Norwood, Charles W. (R) [GA-10] - 6/19/1997
*Rep Packard, Ron (R) [CA-48] - 6/19/1997
Rep Peterson, Collin C. (D) [MN-7] - 10/1/1997
Rep Scarborough, Joe (R) [FL-1] - 10/8/1998
*Rep Stump, Bob (D) [AZ-3] - 6/19/1997
*Rep Tauzin, W. J. (Billy) (R) [LA-3] - 6/19/1997
Rep Traficant, James A., Jr. (D) [OH-17] - 8/6/1998
*Rep Wicker, Roger F. (R) [MS-1] - 6/19/1997

*=also a co-sponsor of H.R.1325. H.R.1335 had 1 Sponsor: Republican, 10 Co-Sponsors, 9 Republican, 1 Democrat, all signed at the beginning when the bill was introduced.

H.R.2001 had, by the end of the 105th Congress, 1 Sponosor: Republican; 19 Co-Sponsors: 4 Democrats, 15 Republicans.

Both H.R.2001 and H.R.1325 expired with the 105th Congress at the end of 1998.

~Jim

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Permalink Reply by cary henderson on July 16, 2010 at 9:49pm

Collin Peterson is the only Democrat on this list still in Congress. We should try to get him to co-sponsor again!

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Permalink Reply by Jim Bennett on July 18, 2010 at 4:12pm

Cary,
Good point. This may be a good time because, if Peterson thinks Nancy Pelosi, who is the one keeping Democrats off the bill (I'm not saying this to be political but as a statement of fact), is now on the wrong side of history, he may be willing to show more independence.

Let's see whom we have in Minnesota to start putting the arm to him.
~Jim

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Permalink Reply by Jim Bennett on July 17, 2010 at 2:52pm

More FairTax History and Lore:

Colleague Bill Spillane from California pointed out to me that H.R.2001 was probably not the first genuine FairTax bill, but it was a clear and unmistakeable predecessor - complete with a "Family Consumption Refund." H.R.2001 did not replace employment taxes, as does the FairTax. H.R.2001, though, is clearly a product of common research, as is reflected in the rate imposed: 15% without replacing Social Security and Medicare. This rate is the FairTax rate minus exactly the portion of the FairTax that covers Social Security and Medicare. See Title II, Section 904 of the current bill.

Interestingly, this predecessor bill, H.R. 2001, does repeal Subtitle E of the Internal Revenue Code: alcohol, tobacco, and certain other excise taxes. The FairTax does not repeal these taxes.

The first genuine FairTax bill appears to be H.R.2525, introduced by John Linder on July 14, 1999. John Linder continues to be the sponsor but is retiring at the end of this term.

H.R.2525, at the end of the 106th Congress in 2000, had the following seven co-sponsors, four of whom were Republican, and three of whom were Democrat:

Rep Barcia, James A. (D) [MI-5] - 9/8/1999
Rep Bonilla, Henry (R) [TX-23] - 9/14/1999
Rep Campbell, Tom (R) [CA-15] - 9/8/1999
Rep Condit, Gary A. (D) [CA-18] - 11/10/1999
Rep Hall, Ralph M. (R) [TX-4] - 9/14/1999
Rep Lewis, Jerry (R) [CA-40] - 11/10/1999
Rep Peterson, Collin C. (D) [MN-7] - 7/14/1999

~Jim Bennett

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Permalink Reply by J David Swift on March 31, 2013 at 3:17pm

Hey, Jim, excellent synopsis. Please bring this up-to-date. I have potential supporters who want to know! The FT books are not specific like this. Thank you!

There is a hybrid income/consumption tax being proposed by a professor of finance at Western Michigan University, Christopher Korth, which has many of the distinct features and advantages of the FT plus a "progressive" income tax on incomes of $1M and up. Let me know what you think: www.sensibletaxreform.org it is short and fast reading and will give you its salient features.

I am discouraged by my Congressmember Tom Reed (R) NY-23 who will not give me the time of day or even allow his aids to call me back to discus HR 25 - very disturbing. He just began his second term, was nearly defeated for re-election, but still won't engage us FairTaxers - what to do?

All my best, and thanks for all you do to improve our country's tax "system",

J David Swift

DD NY-23

716-244-1856 anytime

jdavidswift@aol.com

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Permalink Reply by Jim Bennett on March 31, 2013 at 3:36pm

Hi David.

Thanks.

I'd come right off "sensible tax reform" if I were you and stick to the FairTax. It looks as if STR eliminates corporate income taxes and social security payroll taxes. It changes the federal Estate Tax to a New Jersey-style to a transfer inheritance tax, AND it ADDS A CONSUMPTION TAX.

The problem with keeping the income tax for earners over one million dollars is that it will not stay at a million dollars for long. We will soon have today's tax code all over again, AND the consumption tax.