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NTU Urges Candidate Larry Grant to Pull Deceptive Campaign Ad

October 30, 2006

Mr. Larry Grant
Grant for Congress
PO Box 489
Fruitland, ID 83619

Dear Mr. Grant:

On behalf of the nearly 3,100 Idaho members of the National Taxpayers Union (NTU), I write to ask that you remove an advertisement that mischaracterizes the national retail sales tax plan known as the "Fair Tax." Your ad suggests that your opponent, Bill Sali, supports adding 23% in taxes to everything Americans buy. We object to the use of our organization's logo in this misleading ad and respectfully ask that you stop using it.

As your ad states, the Fair Tax does indeed impose a 23% national sales tax on goods and services. What your ad omits, however, is the fact that the Fair Tax would completely eliminate all income, payroll, and death taxes at the same time. The 23% rate was designed to be revenue neutral when compared with the current income tax structure, thereby ensuring that government will have the resources to fulfill its obligations. Furthermore, the Fair Tax provides protections for low-income families by distributing "pre-bates" that would lower or eliminate their tax burden altogether.

This ad portrays the 23% sales tax as an addition to the already-high tax burden that Americans suffer. That is completely untrue, and the voters of Idaho's First Congressional District deserve better. Just last week, your campaign issued a press release denouncing an advertisement running against you that "deliberately distort[ed]" your positions on taxes and Social Security. Using your response to a Project Vote Smart survey, this ad criticized your answers to several tax-related questions. Ironically, it is now your campaign's ad that is engaging in a deliberate distortion.

The Federal Tax Code is an unmitigated disaster, sapping untold hours and monetary investments from productive enterprises. We have 350,000 members nationwide, from every state in the union, who believe the system must be completely and permanently reformed. A national retail sales tax is one plan among several that we believe would be a major step towards our ultimate goal: taxes that are low, simple, and fair.

We do not write in support or opposition to your candidacy or that of Mr. Sali. In addition, our political action arm, the NTU Campaign Fund, has not made an endorsement in this race and has no plans to do so. We write in the interest of fairness and accuracy. We ask again that you remove this ad and no longer use our name or logo in deceptive communications to the people of Idaho.


Andrew Moylan
Government Affairs Manager