(WASHINGTON, D.C.)  --  Congressman Collin C. Peterson (DFL-7th District) today joined Congressman John Linder (R-GA) this morning to introduce "Fair Tax" legislation in the U.S. House of Representatives.  The bill would abolish all of the current federal tax code, and replace it with a federal retail sales tax of 23% on all new goods and services.

"This is the best and most well thought out idea that I've seen to simplify the tax system, and I think it would do good things for the people and the economy", Peterson said.  "It is fair, easy to understand, easy to administer, and it will eliminate the hassle of dealing with the IRS."

The bill would repeal the individual income tax, including capital gains taxes, along with the corporate income tax, all payroll taxes including Social Security and Medicare, as well as the self-employment tax and all estate and gift taxes.

"Before I came to Congress I made my living as a CPA, and I can tell you that no one really understands the current tax system.  And every time that Congress has acted to "simplify" the system, they have only made it worse.  Under the Fair Tax system, people will get to keep every penny of their paycheck.  People will have more control over their own money, and their own choices about how they want to use it."

Social Security and Medicare benefits would remain the same, and the trust fund reserves would continue to receive the same amount of money as they do now.  The source of the trust fund revenue would simply be a sales tax instead of payroll tax revenue.

"It will be especially good for American agriculture because exports and business inputs would not be taxed.  In fact, it could solve our balance of trade problems because our exports will not have taxes built into their prices.  And, it will be good for the family farmers who want their children to inherit the farm because there will be no inheritance tax."

"I think that when people learn more about this idea, they will get behind it.  I know it will take time to make this kind of change in the tax system, but I think the time is right to be making this kind of proposal because Americans are fed up with what we have now."

The Fair Tax proposal has been created with assistance from Americans for Fair Taxation, and has been endorsed by National Small Business United and the National Taxpayers Union.

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