The Republican-controlled House of Representatives will vote on a bill to eliminate the Internal Revenue Service and replace the current income tax system with a fair tax; a broad-based consumption tax.
Tuesday, Representative Buddy Carter (R-GA) proposed the Fair Tax Act. As part of an agreement with the hardline House Freedom Caucus to become speaker, Kevin McCarthy (R-CA) promised to allow a vote on the proposal on the floor.
What Is Fair Tax?
The measure, which has almost no chance of becoming law under the current Congress, proposes to simplify the tax structure by eliminating the income tax, payroll tax, corporate taxes, gift taxes, and death tax and replacing them with a countrywide consumption tax on goods and services. The plan would also eliminate the IRS as an entity.
The Fair Tax concept has been advocated by conservative legislators for over two decades, despite never gaining substantial support within the GOP and being fiercely opposed by Democrats.
The bill is in many ways diametrically opposed to the legislation passed by Democrats last year, which provided the IRS with cash to hire tens of thousands of additional employees.
Instead of adding 87,000 new agents to the IRS to use as a weapon against small business owners and middle America, this bill will completely abolish the need for the department by simplifying the tax law with features that work for the American people and stimulate growth and innovation.
Carter stated in a statement that armed, unelected bureaucrats should not have greater control over your wage than you do.
Read more: IRS: 12 million Tax refunds for delayed 2020 tax season
Legislators Signed In Favor Of The Act
Reps. Jeff Duncan (R-SC), Thomas Massie (R-KY), Bob Good (R-VA), Jim Banks (R-IN), and Kat Cammack are among the other conservative politicians who have already expressed support for the Fair Tax Act and enlisted as co-sponsors (R-FL).
Proponents claim that the reform would be more equitable for taxpayers by clarifying and simplifying the tax rules, while also bolstering US firms.
During the 2008 presidential election, when former governor Mike Huckabee competed for the Republican nomination on this platform, the proposal received considerable national attention.
Read more: California Earned Income Tax Credit 2023: How to qualify and how much money is available?
