Linder statement on Greenspan's comments before President's advisory panel on federal tax reform 

Washington, D.C. (Mar. 3) - Today, Congressman John Linder (R-GA), a member of the House Ways and Means Committee, made the following statement on Federal Reserve Chairman Alan Greenspan's comments before the President's Advisory Panel on Federal Tax Reform:

   "Chairman Greenspan today discussed the importance of having a tax system in place that does not hinder the U.S. economy and its ability to generate economic success. He pointed out that many economists believe that a consumption tax would be best from the perspective of promoting economic growth, because a consumption tax is likely to encourage saving and capital formation. I applaud Chairman Greenspan for his insight on this important issue.

   "My FairTax proposal (H.R. 25), a bill which would repeal federal income, corporate income, self-employment, payroll, capital gains, gift and death taxes and replace them all with a personal consumption tax. Right now, there are trillions of U.S. dollars stranded overseas because it is cheaper to borrow at 6 percent than to repatriate at 35 percent. That money would come home to add liquidity to our economy. Enacting the FairTax would make the U.S. a magnet for investment from around the globe.

   "I am hopeful that the President's Advisory Panel on Federal Tax Reform will give careful consideration to Chairman Greenspan's comments about the value of a consumption-based tax system."

   For more information on the FairTax, please visit Congressman Linder's web site at http://linder.house.gov/.