Dr. Edwin J. Feulner
The Heritage Foundation
Washington, DC 20002

Dear Dr. Feulner,

I am considering whether to continue my membership in The Heritage Foundation. The primary reason is that I am questioning whether the The Heritage Foundation is really serious about limited government. The question arises from the support Heritage continues to give to retaining the current Internal Revenue Code, although, with alterations to simplify it.

Our Founding Fathers would be very disappointed to see what we have done with the liberties they left us in the Constitution. They explicitly forbade any head tax or tax on individuals because they recognized the dangers that we observe today. The income tax system, with its invasion of privacy, guilty-until-proven- innocent usurpation of individual liberty, social engineering, hidden taxation, and loophole induced unfairness is the major threat to our republic's continued existence and our way of life. The withholding of income, Social Security and Medicare taxes from paychecks and the corporate taxes that are imbedded in the prices of all U.S. produced goods and services all cause the public to be unaware of the level of taxation to which they are being subjected.

These "hidden" taxes contribute to the size of government, whereas, visible taxes are self limiting and keep the size of government in check. The corporate taxes that are imbedded in the cost of US products place American goods and services at a 20%-30% competitive disadvantage to foreign produced products. Is it any wonder that our major exports today are our companies and our jobs. The continued erosion of our industrial base threatens our ability to project freedom around the world and to defend ourselves militarily as we will be incapable of building the jeeps, tanks, ships, etc. to supply our troops and back up our diplomacy. It costs Americans about $500 billion every year just to comply with the current tax code.

Any organization or candidate for federal office that doesn't advocate the elimination of the Internal Revenue Code/the income tax system and its replacement with the FairTax is, in essence, a status quo organization or candidate. History has shown us that any simplification or improved fairness achieved via tinkering with the income tax system will prove to be limited and temporary. Both the original 1913 income tax and Reagan era 1986 income tax were flat and simple, and today the Code is so complicated that it can't be complied with. It is unconscionable that we, as a free people, allow ourselves to be taxed in such inefficient, coercive, and intrusive manner.

The only organizations or candidates that will receive my support will be those that advocate enactment of the FairTax Bill (HR 25/S 25). With 53 cosponsors this proposed legislation has far more support than any other tax reform alternative. It is a 100% visible, loophole free national retail sales tax that taxes things only once, and that is when the new good or service is purchased for personal consumption. It will be shown clearly on every sales receipt. The poor are untaxed and the FairTax is made progressive by a monthly prebate to each household in the amount of what the tax would be on expenditures up to the poverty level. This eliminates the need for loopholes because no one pays any tax on the necessities of life, thereby, keeping the FairTax simple and fair. The prebate is based solely on the number of Social Security cardholders residing there...thus, only legal residents receive it.

The FairTax replaces all income taxes, Social Security and Medicare taxes, and death and gift taxes with a simple revenue neutral sales tax. There is no greater legacy for us to leave our children and country than to eliminate the wasteful and burdensome income tax and restore the simple, efficient and fair tax system intended by our Founding Fathers.

I implore you to please study the FairTax and understand that it is the most far reaching and important legislation to come before our people in generations. I look forward to having the Heritage Foundation disavow any flat and simple income tax as limited and transitory and to advocate the FairTax as the only complete and permanent tax reform alternative.

Roger Buchholtz
Michigan FairTax Director (volunteer)

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