[Congressional Record (Bound Edition), Volume 157 (2011), Part 7]
[House]
[Pages 9917-9918]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              THE FAIR TAX

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Georgia (Mr. Woodall) for 5 minutes.
  Mr. WOODALL. Mr. Speaker, I am pleased to rise today after the former 
chairman of the Ways and Means Committee. I want to talk about taxes 
today, but I want to associate myself with the previous speaker's 
comments about how we make different decisions when we have skin in the 
game because that is absolutely something that we are losing in this 
country. We are losing what used to be that common value that we rise 
and we fall together.
  I see my colleague from the Rules Committee, Mr. McGovern, sitting in 
the Chamber today. And he tells the committee on a regular basis that 
we need to pay for those things that we do. We're involved in wars, and 
we need to pay. We need to have a populace that believes in what we're 
doing in such a way that they are willing to sacrifice not just their 
time but their treasure to support those measures. When we don't have 
folks who have skin in the game, we make different decisions. When a 
minority of the folks get the benefit or a minority of the folks are 
bearing the burden, we make different decisions.
  Now the former chairman of the Ways and Means Committee is absolutely 
right; we have the lowest tax rates among the highest earning 
individuals that we've had in this country since 1950. Now what the 
gentleman did not mention is that we also have the lowest tax rates 
that we've had in this country for the lowest income individuals that 
we've ever had. We have fewer Americans paying income tax today than at 
any time since the 1950s, since the expansion of the income tax that 
happened during World War II, and I hear that. We have the wealthiest 
paying the least that they have ever paid as a percent, as a marginal 
rate. They're actually paying more than they've ever paid as a 
percentage of all the Federal receipts in this country. We have the 
lowest income individuals paying the least they've ever paid as a 
percentage of the income that comes into this country. And I say to 
you, Mr. Speaker, that much like we make bad decisions about foreign 
policy when we don't all have skin in the game, we make bad decisions 
about economic policy when we don't have skin in the game.
  Now when we talk about Iraq and Afghanistan, I'll tell you, Mr. 
Speaker, those are complicated solutions. It is not obvious to me how 
we move from today to peace. I don't know how we get that done. We have 
externalities at play there that we don't have control over, but not so 
with our Tax Code. Folks, when you look at the American economy, there 
is nothing that is going on with the American economy that we did not 
do to ourselves. Think about that. Mr. Speaker, do you have any 
constituents back home who have lost their jobs to corporations that 
have moved overseas? I do. And yet we continue to have the highest 
corporate tax rate in the world in America. Now who decides that? We 
do. We decide that's the kind of country we want to live in, and we can 
change it. Folks, there is nothing wrong with America that we 
collectively can't fix.
  Now I've introduced a bill that I believe is going to make a dramatic 
impact in that direction. It's called the Fair Tax. It's H.R. 25 in the 
House, it's S. 13 in the Senate. And Mr. Speaker, as you know, it is 
the most broadly cosponsored piece of tax reform legislation in either 
body. In fact, it is the most widely cosponsored piece of legislation 
on tax reform in both bodies. And what the Fair Tax does is this--it's 
no magic solution, Mr. Speaker; it doesn't have some sort of clever 
math that's going to make everything okay. It simply goes into the 
American Tax Code and erases it. It says, if you could start with a 
blank sheet of paper, what would you do?
  And Mr. Speaker, we can. We can start with a blank sheet of paper. We

[[Page 9918]]

can choose our own destiny. We can make sure that we're making the best 
decisions for jobs and the economy in this country. The Fair Tax does 
this. It will eliminate the income tax code, that income tax code that 
punishes people for what they earn, and it changes that Tax Code with a 
Tax Code that collects taxes based on what people spend.
  I'll tell you, Mr. Speaker, it pains me every time I open up The Wall 
Street Journal and it bemoans the fact that American consumerism is in 
decline. Why can't we celebrate American savings? Why do we have to 
celebrate American consumption? The reason is because we have been 
building an economy based on an income tax code that is based on debt 
and refinancing and debt and refinancing, but we can change that today, 
Mr. Speaker. We have 1 billion new consumers coming online in China, 1 
billion new consumers coming online in India, and they want what we 
produce.
  The Fair Tax erases the income tax code that forces American 
productivity overseas, forces American jobs overseas, and it returns us 
to our roots as a country, our roots as a country that reward 
productivity, that encourage folks to stay.

                              {time}  1020

  There is only one taxpayer in this country. I know we have a 
corporate income tax. I know we have taxes on goods and services and 
excise taxes, and on and on and on. But there is only one taxpayer in 
the American economy, and that is the American consumer, because every 
single tax we have rolls downhill.
  Do you want to charge that corporation tax? Do you want to charge 
Wal-Mart an excise tax? What do you think is going to happen at Wal-
Mart? Prices are going to go up. Do you want to charge Coke a sugar 
tax? What do you think is going to happen to the price of your Coke? 
The price of Coke is going to go up. There is one taxpayer in this 
country, the American consumer.
  That is a radical idea, I won't kid you. And by radical I mean it is 
the same one Thomas Jefferson had. By radical I mean it is the same one 
Alexander Hamilton had. By radical I mean we haven't done it in the 
last 100 years. But we can do it today, Mr. Speaker, with H.R. 25 and 
S. 13.

                          ____________________