Saxby Economics, Taxes

In 2007, Chambliss Sponsored Fair Tax Bill That Would Create 23 Percent National Sales Tax. Chambliss sponsored the Fair Tax Act of 2007. In April 2007, he and House Sponsor Rep. John Linder held a Fair Tax rally in Atlanta to promote the bill. "I have heard from many Georgians about the FairTax and I am proud to be the primary sponsor of this legislation in the U.S. Senate," said Chambliss. "As we have seen and heard today, there is strong grassroots support for the FairTax which would bring fairness and simplicity to our cumbersome and bureaucratic tax code - and that's what taxpayers deserve." In addition to the 2007 bill, Chambliss sponsored the legislation in 2003 and 2005.   [Chambliss Press Release, 4/3/07; S. 1025, introduced 3/29/07; Chambliss Press Conference, 4/15/05; S. 25, introduced 1/24/05; S. 1493, introduced 7/30/03]

·         Would Impose A 23% Sales Tax In Addition To State And Local Taxes, Pushing Total Taxes Even Higher. State and local sales taxes would come on top of the federal sales tax, pushing the total rate even higher. [Fair Tax.org, What's in it for the states?; National Review Online, 8/9/04]

·         Chambliss Continues to Back Fair Tax. In an August 2008 campaign video, Chambliss reaffirmed his support for the Fair Tax. [Chambliss Campaign Video, 8/14/08]

·         GA Editorial: "Ignore the Sales Pitch" on National Sales Tax. In a 2004 editorial on the national sales tax proposal, the Atlanta Journal-Constitution wrote, "the downside is substantial…There are numerous problems with a national sales tax. Most importantly, sales taxes are regressive. Those least able to afford it use the greatest proportion of income to pay sales taxes…The end of federal income taxes would render worthless the deduction for mortgage interest, a major incentive for home ownership." [Atlanta Journal-Constitution, 8/18/04]

National Sales tax would increase taxes on 80% of Georgians.  According to a study of the House version of the Fair Tax completed by the Institute on Taxation and Economic Policy, the average tax increase for the lower four income quintiles in Georgia would be $3,724, $3,523, and $3,269, and $1,690, from the lowest income quintile to the second highest.  On average, all of those in the highest income quintile would receive tax cuts.  This legislation would raise taxes then on the lowest 80% of income earners in Georgia. [Institute on Taxation and Economic Policy, 9/04]