America's present Tax Code is extremely punitive and complicated, taking more from taxpayers than ever before. The current Tax Code is clearly not what the nation envisioned when it ratified the 16th Amendment nearly 100 years ago.

Initially, rates were extremely low. In fact, the tax rate on the first $20,000 of income was a mere one percent, while the highest rate was still a fairly reasonable seven percent on all income above $500,000. In 2001 dollars, that would equate to a one percent income tax on all income up to $300,270 while the seven percent rate would apply only to income earned above $7.2 million. In fact, as late as 1939 only five percent of the population was required to file income tax returns.

Today, the federal income tax is extremely "progressive" in the worst possible sense of the word. Dangerously burdensome on both the taxpayer and the economy -- and maddening in its complexity -- it has become a detriment to America's prosperity.

While progressive income taxes are inherently unfair and unquestionably slow our economy, the regressive nature of our current payroll taxes certainly hurts those who can least afford to pay them. As you are aware, the poor in America do not pay excessive income taxes, but they do pay excessive payroll taxes.

The FairTax would replace both the income and payroll taxes with a simple, fair, sales tax with monthly rebates, it would greatly benefit all Americans and our national economy.

These federal taxes would be replaced by a national retail sales tax. Initially, the FairTax would set the national sales tax rate at 23 percent, with adjustments made to the rate in subsequent years.

The national retail tax would only be collected on new purchases, making "used" purchases tax-free. Additionally, business purchases would be exempt from the tax, thereby eradicating corporate tax compliance costs currently hidden in retail prices.