William Tauzin: “Well, let us start out with the notion, Charlie, that every citizen that buys that loaf of bread suddenly has more money…”

“Well, let us start out with the notion, Charlie, that every citizen that buys that loaf of bread suddenly has more money to buy it with. I want you to look at your tax statement or look at your pay stub this week. Look at how much money is taken out in withholding taxes from your pay stub. I would like everyone in the chamber to do that. Look at the amount of money that you finally got as your salary. Look at how much money the Government took before you even saw your salary in the form of withholdings, and imagine tonight that instead of the Government withholding that money from you, imagine it all came to you, that you had all those withholding taxes now to spend to buy that loaf of bread. You would have a lot more disposable income in your pocket as a family to buy that loaf of bread. Second, the gentleman is right, when we repeal the income tax effect on products produced in America, we reduce that cost significantly. And if the cost of the income tax system is 15 or 30 percent of that loaf of bread, in a competitive marketplace, what quickly happens is that bread competitors, all of whom want you to buy their bread, start competing against one another; and because they have a big margin now with profit to work with, they tend to lower their prices to attract customers away from one another. So, in the normal course of events in the competitive marketplace, prices begin to fall, prices of American products begin to come down in our society.”