[Congressional Record Volume 149, Number 115 (Wednesday, July 30, 2003)]
[Senate]
[Page S10269]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CHAMBLISS:
  S. 1493. A bill to promote freedom, fairness, and economic 
opportunity by repealing the income tax and other taxes, abolishing the 
Internal Revenue Service, and enacting a national sales tax to be 
administered primarily by the States; to the Committee on Finance.
  Mr. CHAMBLISS. Mr. President, I rise today to introduce the Fair Tax 
Act of 2003. This bill will promote freedom, fairness, and economic 
opportunity by repealing the income tax and other taxes, abolishing the 
Internal Revenue Service, and enacting a national sales tax.
  The Fair Tax, commonly referred to as a national sales tax, is a 
necessary piece of tax reform that, should it pass, upon its inception 
would uproot our current unjust progressive tax code and replace it 
with a simpler, fairer one.
  I believe our antiquated tax code, that was implemented in 1913, and 
has since been modified numerous times, is overly complicated and 
desperately in need of an overhaul. We are well beyond rectifying the 
unfairness in our current system by tinkering around the edges. All 
Americans are in dire need of unbiased sweeping tax reform--and the 
fair tax is just that.
  The Fair Tax Act of 2003 would repeal the individual income tax, the 
corporate tax, capital gains taxes, all payroll taxes, the self-
employment tax and the estate and gift taxes in lieu of a 23 percent 
tax on the final sale of all goods and services. The eradication of 
these taxes will not only bring about equality within our tax system, 
it will also bring about simplicity.
  This bill will also provide for tax relief for business-to-business 
transactions. These transactions, including used product transactions 
which have already been taxed, are not subject to the sales tax, 
thereby abrogating any double taxation.
  Social Security and Medicare benefits would remain untouched under 
the Fair Tax bill. There would be no financial reductions to either one 
of these vital programs. Instead, the source of the trust fund revenue 
for these two programs would be replaced simply by a sales tax revenue 
instead of a payroll tax revenue.
  And lastly, under this bill, every American would receive a monthly 
rebate check equal to spending up to the Federal poverty level 
according to the Department of Health and Human Services guidelines. 
This rebate would ensure that no American pays taxes on the purchase of 
necessities.
  The Fair Tax creates a fairer, simpler code that allows every 
American the freedom to determine his or her own priorities and 
opportunities.
  Ronald Reagan once said, ``I believe we really can, however, say that 
God did give mankind virtually unlimited gifts to invent, produce and 
create. And for that reason alone, it would be wrong for governments to 
devise a tax structure or economic system that suppresses and denies 
those gifts.''
  I couldn't agree more.
  And as long as we continue to operate under our current skewed tax 
code, we will continue to suppress and deny these unlimited gifts to 
the American people who would otherwise thrive boundlessly under the 
Fair Tax.
                                 ______