In a ruling due to be made public sometime this week, the W.T.O. ruled against a U.S. tax break, forcing either U.S. exporters to pay up to $4 billion in penalties on their exports, or the U.S. Congress to change this tax law.

According to an article by Bloomberg News, Chris Padilla, a Washington lobbyist, responded to the ruling by saying, "It's not good for our country, it's not good for our company, and it's not good for U.S. workers. Companies would be penalized under the tax code for exporting."

But Chairman Bill Thomas, of the congressional committee that writes U.S. tax law, viewed the W.T.O. ruling as an opportunity to reform the current U.S. tax system. "America's tax system is antiquated and needs fundamental reform," Thomas said. "Dragging out the process through extensive appeals or cosmetic changes to our tax system will not solve the problem."

Carrie Ardelean, Vice President of Operations at Americans for Fair Taxation, stated, "Once again, we see a leading Congressman, the Chairman of the tax law-making House Ways & Means Committee, calling for action on fundamental tax reform. By following Chairman Thomas's lead, Congress can give us the fundamental tax reform the American people have been demanding."

Americans for Fair Taxation is a non-profit, non-partisan organization dedicated to replacing our federal income tax system with a simple, single-rate federal consumption tax on the final purchase of new goods and services. Established in 1995, Americans for Fair Taxation is headquartered in Houston, Texas with an office in Washington, D.C. and is supported by 418,000 members and Volunteers throughout the country. To schedule an interview with one of our spokespersons, ask for Genie Hayes at 1-800-FAIRTAX. For more information on the FairTax, please visit www.fairtax.org.

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Posted 8/16/01