Lumberton, NC - Rep. Mike McIntyre, seeing the positive response to his challenger Will Breazeale's Fair Tax proposal, released a statement on his co-sponsorship of the “Tax Code Termination Act.” Citing it as a “plan” to replace the current complex tax code by July 4,2009. The original date was 2001 and has changed with every ensuing Congress. The “Tax Code Termination Act “ is skimpy on details but clearly leaves the income tax and the IRS in place and specifically exempts the Social Security Tax and Medicare Tax from the reform. Congress has traditionally used the tax code as a tool for “social engineering", attempting to reward some segments of society while punishing others. This bill McIntyre supports does nothing to end that practice and in fact includes language that would explicitly exclude businesses from the “reform” process.

The Fair Tax proposed by Breazeale would end the income tax for individuals and businesses, would apply to Social Security and Medicare taxes and provide for direct "Prebates" of taxes paid for basic necessities by all Americans. By eliminating the income tax on businesses, the embedded taxes – those paid by the business and included in the consumer's price – and the embedded costs of compliance with the income tax, the consumer price of goods and services would fall. The billions of dollars wasted each year by businesses having to track and report their income and expenses and manipulate their business practices to take advantage or avoid tax loopholes would be put to much more productive use by the businesses and their customers.

According to Breazeale, “During the ten years McIntyre has been supporting the Tax Code Termination Act the reality is the tax code has become even more complex. It is time to scrap the Income tax and start anew with the Fair Tax!”