"There

is an American worker on an assembly line making a product that they hope

to sell to a customer in the U.S. or overseas. On an identical assembly

line in another country, there is another worker making a very similar

product to sell to the same customer. Because of our tax codes, the American

worker is at a disadvantage," Collins explained to the approximately

40 attendees. "All of the taxes are added to the price of the product

and because foreign nations do not have similar tax provisions, they can

sell their products for less than American businesses. This holds back

growth our economy needs in order to create new jobs."

To eliminate

this disadvantage, Collins suggested passage of H.R. 25, the Fair Tax

sponsored by Georgia Congressman John Linder, to allow business to compete

on a level playing field with foreign competitors. A national sales tax,

H.R. 25 only taxes the final domestic sale of retail goods or services,

eliminating costly compliance with complicated tax codes.

"Most

other nations already have a value added tax," Collins said. "This

allows them to sell their products for less because they are passing less

tax onto the consumer, underselling American companies because we lack

a similar system. This causes many companies to take their jobs to other

nations with more favorable tax treatment."

Collins said

that a similar system in this country would not only export more American

products, but would also grow business and create jobs.

"It's

all about jobs. Jobs come from profits. Profit has become a dirty word

in Washington. Many people think that if a business is profitable it is

because the employees are crooked or greedy. But, profits are what pay

wages, they pay for health benefits, they pay for retirement plans and

401(k) plans, and they allow business to grow and create new jobs. Without

profits, there is no economy," Collins said.

Additionally,

Collins cited the tremendous loss to the government from waste, fraud,

and abuse caused by compliance with complicated and unfair tax codes.

"The General

Accounting Office estimates that between $200 billion and $800 billion

each year is lost because taxpayers either intentionally or unintentionally

misfile their taxes. The tax code is so complex that it encourages lost

revenue to the government. The Fair Tax would eliminate this loss, spur

growth, and create jobs," Collins said.

Called the

Fair Tax Act of 2003, H.R. 25:

Repeals all

individual and corporate income taxes, payroll taxes, self-employment

taxes, capital gains taxes, estate taxes and gift taxes.

Imposes a

revenue-neutral national sales tax on all new goods and services at the

point of final purchase for consumption. Business-to-business transactions

and used products (which have already been taxed) are not subject to the

sales tax.

Rebates the

sales tax on all spending up to the poverty level.

Proponents

of the Fair Tax say that it would:

Dramatically

reduce the costs of goods and services by 20 to 30 percent.

Allow consumers

to keep 100 percent of their paycheck, pension, and Social Security payments.

Gross Domestic

Product will increase by almost 10.5 percent in the first year after enactment.

Compliance

costs would decrease by 90 percent.

Real investment

would initially increase by 76 percent relative to the investment that

would be made under present law. While this increase would gradually decline,

it remains 15 percent higher than under the existing tax structure.

Exports would

increase by 26 percent initially and would remain more than 13 percent

above the level under the current tax system.

Real wages

will increase.

Increases

incentives to work by as much as 20 percent in many households, leading

to higher economic growth and efficiency.

Interest rates

will fall 25 to 35 percent.

Collins, as

well as 31 other prominent members of the House of Representatives including

Majority Leader Tom DeLay, has signed onto H.R. 25 as an original cosponsor.