Economists Nationwide Endorse The FairTax Plan.

The plan includes HR 25/S 25, repealing and replacing the income and payroll taxes with a progressive national sales tax, as well as
HJRes 16, repealing the 16th Amendment.

Houston : Over 75 economists nationwide endorsed the FairTax in a letter delivered to the House, Senate, Treasury, tax reform panel and the President today. Tom Wright, executive director of FairTax.org, stated, "Nearly seven months ago an idea was born in the mind of a FairTax supporter who is an economics professor at the University of Virginia's College at Wise. He wants the broad public to know just how many economists have examined and recommend the FairTax plan. That idea became a project that has finally come to fruition. Over 75 economists, one of whom is a Nobel Prize winner, have now endorsed, specifically, the FairTax HR 25 and S 25, in writing. We call this a direct validation of our more than $22 million in academic and market research completed over the past 10 years. This economist endorsement letter was delivered to the offices of every single tax aide on Capitol Hill this week. We also made sure the President, his tax panel, and Treasury Secretary Snow had a copy. This letter further evidences the fact that Americans realize the inefficiencies of the current system and see the FairTax, HR 25 and S 25, as the proper replacement."

David L. Kendall, Ph.D., Professor of Economics and Finance from the University of Virginia's College at Wise, stated, "I support the FairTax and I asked other economists to join me with their support for a very simple reason: The FairTax offers Americans substantial and very real advantages over the income tax system we have now. Our federal income tax system is inefficient, far too costly, and simply not the best way to pay for government. I think all Americans are dismayed, outraged, and disgusted that our federal tax code contains millions of eye-glazing words spread across more than 60,000 pages. We all know it's a disgrace, and we all know it must be changed. Like most economists, I know that our income tax system slows economic growth, discourages work, and encourages current consumption over saving, saving that is needed to spur economic growth, which creates more jobs. Most economists agree that a consumption tax is less costly and more efficient than an income tax. Simply put, that's why I support the FairTax and that's why other economists endorsed my letter."

Tom Wright added, "The income and payroll tax systems are job-destroying travesties. Not only does the American public have the political will to replace them, the FairTax plan is viable (ask Texas and Florida), historically proven (ask the Phoenicians), acceptable (ask American voters), and now, endorsed by economists nationwide. The FairTax offers long-needed simplicity, efficiency, and fairness to all Americans by eliminating the income and payroll taxes. FairTax.org with a membership and supporter base of almost 600,000 strong is dominating the tax reform battle with thousands of American taxpayers' voices demanding relief."

Laurence Kotlikoff, Ph.D., chair of the economics department at Boston University, and co-author of The Coming Generational Storm, has stated, "Our tax code is a mess for a reason. Special interests pay for special favors. And with thousands of pages and counting, there are plenty of places for our politicians to hide the kickbacks. Meanwhile, all the exemptions, deductions, exceptions and special provisions reduce the tax base, which means higher tax rates and smaller incentives for individuals and companies to produce income. And whether the tax breaks are set in fine print or spelled out in bold type, they generally favor the rich, making our tax system less progressive than is generally believed. No tax system is perfect, but ours is so awful that fundamental reform is the only option. Fundamental reform is not just a necessity, it's also an opportunity to stop taxing income and start taxing consumption. My colleagues and I have been studying income and consumption taxation via computer simulations for some time now. We've found that switching from taxing wage and capital income to taxing consumption can significantly improve economic efficiency and growth. What's more, it can make our tax system much more progressive and generationally equitable. Fundamental tax reform is long overdue. Consumption taxation is the way to go."

Tom Wright thanked the volunteers who organized the effort to inform economists and asked for their input on the FairTax legislation by stating, "FairTax.org is a grassroots organization. Nearly 50,000 really active volunteers across the country are rallying behind the FairTax bill for various reasons. We thank Dr. Kendall and his efforts on behalf of the FairTax legislation and the economic principles it encompasses. HR 25/S 25 is the answer for our income and payroll tax burden. It is open, accountable, simple to understand, and fair to all Americans.

"No loopholes, no exceptions, and no American pays any federal taxes, hidden or obvious, up to poverty level consumption. This letter is an historic milestone for the FairTax concept. It coincides nicely with Federal Reserve Chairman Greenspan's comments and the good words by esteemed economist Milton Friedman when testifying before the President's tax reform panel in favor of consumption taxation. We believe after more than a decade of work, over $22 million dollars and hundreds of thousands of volunteer actions, our time is coming and the American people are fast becoming ready for the full tax replacement alternative, the FairTax.

Please view the letter in its entirety at http://www.fairtax.org/eco_endorsements.html or you may request a copy of the letter by fax or e-mail by calling Gloria Garza at 1-800-FAIRTAX #106 or e-mailing gloria@fairtax.org.