Moving away. D i think the u. N. Conference in new york indicated significant part of thishe countrys Largest Companies to saying, weren factoring the cost of carbon into our decisions. Why arent governments . So there is a changing dynamic here, which gives us a better of what we might be able to achieve by 2025 on the Climate Action plan efforts and beyond. And no one rule is going to be linchpin here. Its going to have to be a combination of efforts between sector,nt, the business states, local communities, and to step up tod the plate and help contribute to this. Ive got about three minutes left. Thanks for being here today. Past, depending on which data you look at, theres orn a slowdown or a pause hiatus in Global Warming for the last 15, 18 years. The epandering if factors that at all into its policies and more recent studies saying climate is more sensitive thought in maybe we the 90s. Is this something you take into account with the current rules . With thetainly work rest of the u. S. Government to take a look at these factors. But i dont want to take a lot that. E on that is a shortlived issue that doesnt represent climate, which at on a longerterm basis. And it represents one factor, so many others, most of which are looking like theyre accelerating at levels didnt anticipate as opposed to being more moderate. So if you look at the entire science record, we are looking at all of those issues, but wereg tells us that being overly aggressive in understanding the actions we or the impacts of doing nothing on climate. For doing this. Kin we appreciate it. Hope you come back. Welcome. Hope youll get a bit of breakfast. That. Ogize for it was delicious. Occupational hazard, huh . Well hear more about policy monday when the center for American Progress hears from todd stern, who state Department Special envoy for climate change. Global effortst to curb climate change, including the recent agreement china tohe u. S. And reduce carbon emissions. Thats live monday at noon eastern on cspan 2. This thanksgiving week, cspan is featuring interviews from congress. Embers of watch the interviews monday through thursday at 8 00 p. M. Eastern. That to some of the people involved in congress 1860s the 1830s to period. Certainly steven a. Douglas. Strugglinge were desperately to try to work out compromises to keep the union avoid itat and splitting up. I think we have a lot of members. Younger and its not just, by the way, mrs. Pelosi. Been a great leader and she is really good at raising money. My fortes. One of i was never good at that. Have to start training younger people and bring younger into the caucus to become leaders. The future one of the things that i certainly believe, with all my to knowd soul, you have when to leave. And also on thursday, thanksgiving day, well take an American History tour of various native american tribes. Eastern, 10 a. M. Following washington journal. Then at 1 30, attend the groundbreaking ceremony of the new Diplomacy Center in former secretary of states. And Supreme Court justices at p. M. Eastern. Thats this thanksgiving week on cspan. Schedule, go to cspan. Org. Georgia congressman rob woodall spoke recently at the Heritage Foundation about a sales tax proposal that would replace the current income tax. Currentlytive woodall chairs the republican study committee. From the Heritage Foundation, hour. S just over an we, of course, welcome those on our heritage. Org and via cspan. I would ask that everyone in the house check that cell phones off, as weurned prepare to begin. And we do remind our internet viewers that questions can be at any time, simply speaker heritage. Org. And we will post it on the home page following todays airing. Hosting is david burton. Tax matters, securities law, entitlements, andregulatory Administrative Law issues. Before joining us at heritage, and career,onal including serving as general the National SmallBusiness Association and chief Financial Officer and general of the alliance for retirement prosperity. Theas also a partner in argus group of virginiabased Public Policy and Government Relations firm. In welcominge david burton. David . Welcome conservative principals lead to conclusions about tax policy. First, conservative tax system necessary the revenue to fund limited government with the least negative economic toact that is practical achieve. This is accomplished by structuring a tax system to interference with free markets, to minimize the caused by taxpayers and to minimize Tax Administration costs. This, in turn, will lead to the highest level of economic output, Economic Growth, innovation, opportunity, job creation, real wages and whenerity thats possible raising a given amount of revenue. Second, a conservative tax limit theuld seek to tax systems adverse impact on the core institutions of civil family, including the and voluntary associations, such as religious and Educational Charities and community organizations. Third, a conservative tax system be just, because a just political order protects individual right to life, liberty and property. Minimizes thetem minimizing of those rights by in application with special privileges for none taxpayers rights to due process. Lastly, a conservative tax visible andd be understandable so as to accurately convey the true cost of government to the public. This analysis leads to a number of specific policy recommendations. A conservative tax system would impose one flat or proportional be neutral towards savings and investment, or taxed differently, consumption. It would exempt the poor but only the poor from tax. Would not impose a marriage penalty. And it would provide tax relief with children and would not impose taxes on the core voluntary associations that constitute civil society. Principle, four ways to satisfy these criterion. E economic a flat tax, a consume income or, a business transfer tax, a National Sales tax. Today were examining the case a National Sales tax. The first National Sales tax was introduced by congressman dan shafer and billy koza in 1996. 1999, representative john linder introduced the fair tax. The primary difference between the two plans is that the fair tax repeals payroll taxes and accordingly, has a somewhat higher tax rate, statutory tax rate to raise the same amount of revenue. John linder has retired. Successor in congress is our speaker today. Is todayan rob woodall the lead sponsor of the fair tax. 75 cosponsorsas and it is, in terms of cosponsorship, by far the leading tax reform proposal in congress. Today representative woodall is going to speak to us and answer audience questions, and then get congress. S work in then well have two excellent todd mccracken, president of the National SmallBusiness Association, and karen wallaby, who is Research Director of americans for taxation. After their remarks, well have an additional questionandanswer session. One final note. The Heritage Foundation is doing series of events on fundamental tax reform i and the raised by tax reform and various tax reform plans. Events coming up. A. M. , there3, at 11 will be a speech on tax reform and Economic Growth. Former cbo 10, director and Tax Foundation president will discuss how we might improve the tax policymaking process. Today iser representative rob woodall. He represents the seventh of georgia and serves on the house rules committee, the budget committee, the oversight and government reform. He also serves as chairman of the republican study committee. Born and raised in georgia. He received an undergraduate furman university. That you not hold it against him that hes a lawyer. Lindersngressman john chief of staff and was elected to congress in 2010. Ive known the congressman for a long time. I can say with conviction that theres no better friend to the taxpayer in congress. Hes the tip of the spear in the reform. To achieve tax hes a tireless, articulate and effective spokesman for tax reform and i very much look forward to what he has to say today. Welcomingn me in congressman woodall. David, i appreciate that. I can tell you that the night i elected, four years ago, my mother looked at me and said, being myve gone from favorite to a lawyer to being a congressman. Go to jail. Dont sliding down that scale. There is nothing i could do to rainy, cold and dreary day in washington, d. C. Excite me more than to talk about the fair tax. It was amazing to me that the big dreamsdream the seems not to be present in this anymore. Its hard to get something past it that just nibbles around the edges. You get something passed that actually changes the way we think about our tax system, about our relationship with the american Tax Collector . Well, the fair tax. Folks ought to know that the fair tax didnt come from washington, d. C. The fair tax came from a group in texas whoers had had some success dealing tort reform issues. As you know now, doctors are flocking into the state of texas to practice because they were able to receive in making medicine work for doctors and patients. These Civic Leaders got together and said, if we can do that for couldate of texas, what we do for america as it retl res system . Lets start with a blank sheet of paper and see what happens next. And that makes all the difference. Not some of the difference. All of the difference. I put a chart up that shows the rates oforporate tax oecd countries and graphed that compared to the american tax rate, going back to the 1980s, going through 2010. Every tax reform proposal to deal with this tremendous disadvantage that an international marketplace. But i put this up because its to me that in these past two years, weve had a the ways and Means Committee that has done more for tax reform than any other chairman in my memory. Going back 20 years. I can never think of a chairman that has worked harder to make the tax code make more sense for American Consumer and for the American Family and for the has davebusiness than camp from michigan. Hes retiring at the end of this year, as you all know, and were a tremendous talent in dave camp. But when he got together to take ambitious reform of the tax code that i have seen in said, lets see if we can get the corporate kind ofax rate down to that country average, kind of international average. Thats striking to me the best effort, again, that i have seen in my was an effortit to see if we can be right there in the middle. Mediocre. Be i dont know when it became true in america that when we set our on doing something, our goal is to be kind of like everybody else. They do its the way in europe. How it came to be that in america, when we decide that we difference, we look around at what everybody else is doing and say lets be the same. I dont want to be the same i want to lead. I want to lead. And what we do with the andorate income tax rate the fair tax is take it to zero for one reason and one reason only. A businessres not on this planet that pays taxes. As you all know, businesses collect taxes. Consumers, final consumers, pay taxes. Walmart doesnt pay taxes. From mecollects the tax when i go buy and shop at walmart. Fair tax is the that it is the only tax being things. D that does two number one, the only tax being discussed that completely eliminates hidden taxes in the of everything that we buy. I mean, you know how easy it is to congress if your Campaign Promises im gonna take personal income tax rates im just gonnad make all those big bad corporations pay the bill. Is to know how easy that run as a Campaign Slogan . Were going to let you all off the hook, were just going to tax walmart. Thats nonsense. This is the only tax that makes transparent what the burden is American Consumer. What is the cost of government today . That. You to think about fair tax rate is set at 23 . Big number. Scares me sometimes when i think it. T and im not entirely proud about telling people that im supporting a tax bill that is going to create a 23 consumption tax. But the reason we do that is because thats what it costs to fund the United States today. Ent as it exists fair tax is not a bill about shrinking the size of government. Bill about shrinking our tax code so we can grow the size of the economy. Were the only ones who are honest with folks about what that inment is. Its about what that number is. If its too low, lets be honest. Too high, lets lower it. But we can be honest with folks the size of government is. Absolutely no other tax proposal do is eliminate the payroll tax. The payroll tax. You know, when i go into high with seniortalk classes, theyll talk about their parttime jobs. Now. Know all about taxes they didnt know about taxes before they took on that parttime job, but they know all about taxes now. And the one they want to know about is that one called fica. World are they getting for that . I dont know if youve looked at is numbers, but payroll tax the largest tax that 80 of American Families pay. That. You to think about how many thanksgiving and christmas difference are going next interrupted over the 60 days with talk dare i say taxes . Ts about income griping about income taxes. Frustration about income taxes. Tell you how many there will be, but there will not be theconversation about payroll tax, even though thats the largest tax that 80 of pay. Cans if you want to get the tax man off of the american of theeneurs back, off American Families back, if you thirst forate that production that i think is the american psyche, youve got to eliminate the largest tax that 80 of thatcans pay, and that is payroll tax. People often think about sales regressive. Ng its the only proposal in all of d. C. That proposes to eliminate that tax burden that tax burden for 80 of American Families. Route. D the income tax this goes back to the kennedy administration. Cutter. He original tax he cut that rate from 91 down to 70 . My moreidnt bring in money. Across the top, ive graphed the rate. Al tax across the top, ive graphed receipts. I need to give credit where credit is due. The Heritage Foundation put out this chart. Out a tremendous group of economic charts to help impact oferstand the washingtons decisions on our economies, families and businesses. From their collection. What you see here is that it does not matter how high or how low the income tax rate is. America is only willing to give you so much. Largest change in individual income tax receipts claim during the clinton administration, not tax rate changed at all during the clinton thenistration but because economy was on fire during the 90s. Turns out if folks are making money, theyre spending more money, paying more taxes. In moreet to bringing revenue is a bigger economy, not a higher tax rate. Defines that, ways so manyhat in other programs miss. I take you back to 1997. Giant midst of this economic explosion, the joint had a symposium on how do you model a consumption tax. Me to get the fair tax scored, because its not edges. Bbling around the its something completely different from what we have ever done before. In economic analysts from the left and eight different macroeconomics groups and said, all us how you would model switch in america to a consumption tax like the fair tax. Well, they all went out and came back months later. They all came back with you wouldnumbers, as imagine. But the one thing these eight different macroeconomic analytical groups agreed on is wouldhe American Economy grow faster under a consumption the current tax system. The liberals thought it would grow a little bit faster. The conservatives thought it grow a whole lot faster. But the area of agreement is we can do better, and that has to do with getting us out of the rate. Ss of marginal tax it also has to do with getting us out of the business of tax expenditures. The biggest problem we have in the fair tax passed is all the people who are really smart in washington, d. C. Out if youre really smart, youve got an idea about how we can use the tax code to make somebody elses life better. You do. You look deep into your heart. In this room has an idea about how if only we in thisted the tax code way or that way, we could affect the behavior of america and that would make america better. Top tax expenditures, employerprovided health care, for dividendsates and capital gains, and the earned income tax credit. Tax goes to zero tax expenditures. Exceptions. Zero exemptions. Whole dont turn the system on its head, its hard to change the association that taxe folks have with these expenditures and their quality of life. Whenn friedman was asked he was testifying, they said, what would be the easiest way to make sure we dont have a new tax code littered with all these deductions and exemptions . He said start out with a tax none. Hat has absolutely start out with a tax code that has absolutely no exceptions, deductions, exemptions, because if theres a good reason to put one in there, i can probably make a good case to put in two and then three and then four and then five. And isnt that the way we arrived at the income tax that we have today . I dont dispute that there is these taxach one of expenditures. What i dispute is that the tax code is the best place to social policy. Socialle policy is the best social policy is the best place to implement social policy. Tax policy is the best place to collect taxes. No deductions, no exemptions. Absolutely every new good or