Should Congress eliminate income, payroll, and estate/gift taxes in favor of a national rate on sales taxes and abolish the IRS?
The bill seeks to repeal income taxes, payroll taxes, as well as estate and gift taxes. A set 23% tax rate on sales tax is proposed as an alternative. Proponents of the bill assert that there will be more freedom, fairness, and economic opportunity as a result. Under this bill, the responsibility of tax collection will be shifted to the states, and the IRS will be abolished.
Sponsor: Rep. Earl L. “Buddy” Carter (Republican, Georgia, District 1)
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Opponents say
• "If the president were presented with H.R. 25 – or any other bill that enables the wealthiest Americans and largest corporations to cheat on their taxes, while honest and hard-working Americans are left to pay the tab – he would veto it" Source: White House Press
• "Hold on: House Republicans want a national 30% sales tax on everything from groceries to gasoline? They want to raise taxes on working-class & middle-class families while slashing them for millionaires & billionaires? Are they TRYING to show exactly how out of touch they are? " Source: Elizabeth Warren (Democrat, California, Senator)
• "Last week, House Republicans announced that they will vote on a bill to abolish the IRS and income taxes. Instead of an income tax, the bill, known as the Fair Tax Act, would create a 23% national sales tax. Although the bill won’t pass the Senate or sustain a presidential veto, some conservatives will continue to push for similar legislation for years to come. The term “Fair Tax” is a misnomer. This legislation would shift the burden to the most vulnerable taxpayers, people who live paycheck-to-paycheck and cannot afford more hardships. In addition, a Fair Tax would lead to lower tax revenues, meaning substantial cuts to crucial services that affect millions of Americans. The Fair Tax is nothing new. Similar legislation was first introduced in 1999, more than two decades ago. The bill seeks to replace most current federal taxes with a single 23% sales tax." Source: The News Review
Proponents say
• "Cosponsoring this Georgia-made legislation was my first act as a Member of Congress and is, fittingly, the first bill I am introducing in the 118th Congress... Instead of adding 87,000 new agents to weaponize the IRS against small business owners and middle America, this bill will eliminate the need for the department entirely by simplifying the tax code with provisions that work for the American people and encourage growth and innovation. Armed, unelected bureaucrats should not have more power over your paycheck than you do." Source: Rep. Earl L. "Buddy" Carter (Republican, Georgia, District 1)
• "As a former small business owner, I understand the unnecessary burden our failing income tax system has on Americans. The Fair Tax Act eliminates the tax code, replaces the income tax with a sales tax, and abolishes the abusive Internal Revenue Service. If enacted, this will invigorate the American taxpayer and help more Americans achieve the American Dream," Source: Rep. Jeff Duncan (Republican, South Carolina, District 3)
• "I’m very proud to once again co-sponsor the FairTax Act…We’ve seen a continued growth of the IRS and a persistent punishment of hardworking Americans via the tax code. What we’re calling for is a simplified and fair code that works for all, not just some. I urge my colleagues to support this commonsense legislation that fights back against the weaponization of the IRS and stops punishing those who work hard to succeed." Source: Rep. Kat Cammack (Republican, Florida, District 3)
