Congressman Steve King, a republican from western Iowa who’s an advocate of getting rid of the national income tax and instituting a sales tax instead, sees one sector of the business world as the biggest hurdle to such a change. King says the “hardest thing to sell” in making the transition from an income tax to a national sales tax is what to do with the tax-free annuities, bonds and other investments structured as tax credits. He says the industry that’s sprung up to help Americans avoid paying taxes will have to adjust if the switch to a national sales tax is made. “They’re an industry that’s grown because of the IRS tax code in the first place and I don’t feel too badly about asking them to use their creativity to reconstruct themselves into another phase of our economy,” King says. King this past week began lobbying President Bush to be named to a panel Bush is assembling to recommend significant reform of the nation’s tax collection system.
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