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House to vote on bill to abolish IRS and replace income tax with 'Fair Tax'
Washington Examiner ^ | January 10, 2023 06:16 PM | by Zachary Halaschak, Economics Reporter |

Posted on 01/11/2023 6:43:18 AM PST by Red Badger

The Republican-led House will vote on a bill to abolish the IRS and replace the existing income tax system with a wide-reaching consumption tax.

Rep. Buddy Carter (R-GA) introduced the legislation, the Fair Tax Act, on Tuesday. Kevin McCarthy (R-CA) agreed to allow a floor vote on the legislation as part of a deal cut with the conservative House Freedom Caucus to become House speaker, Fox News reported.

The bill, which has a near zero chance of becoming law during this Congress, envisions simplifying the tax code by scrapping the income tax, payroll tax, corporate taxes, gift taxes, and the death tax altogether and replacing them with a nationwide consumption tax on goods and services. The IRS as an entity would also be killed by the legislation.

The "Fair Tax" plan is one that has been touted by conservative lawmakers for more than two decades, although it has never gained widespread acceptance within the GOP and is vehemently opposed by Democrats. The bill is in many ways the polar opposite of the Democratic legislation passed last year that infuses the IRS with funds to hire tens of thousands of more IRS workers.

“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,” said Carter in a statement.

Several other conservative lawmakers have already signaled support for the Fair Tax Act and joined as co-sponsors, including Reps. Jeff Duncan (R-SC), Thomas Massie (R-KY), Bob Good (R-VA), Jim Banks (R-IN), and Kat Cammack (R-FL).

Proponents argue that the change would be fairer to the taxpayer by clarifying and simplifying the tax code while supporting businesses in the United States. The proposal gained increased national attention during the 2008 presidential election when former Gov. Mike Huckabee ran on the platform during the Republican primaries.

“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,” said Duncan.

The bill’s introduction comes a day after the House held its first vote under Republican leadership, which was to claw back a majority of the $80 billion allocated to the IRS by Democrats last year. It passed 221-210 along party lines.


TOPICS: Business/Economy; History; Society
KEYWORDS: unfairtax
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To: Red Badger

Getting rid of the IRS, and having a consumption tax seems like the best option for the nation.

I am sure that it won’t go anywhere because it’s best for the people.


41 posted on 01/11/2023 8:49:55 AM PST by Pete Dovgan
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To: Red Badger; All
Thank you for referencing that article Red Badger. Please note that the following critique is directed at the article and not at you.

"The Republican-led House will vote on a bill to abolish the IRS and replace the existing income tax system with a wide-reaching consumption tax."


FR: Never Accept the Premise of Your Opponent’s Argument

Instead of giving patriots a new legislative term “dog and pony show” that sidesteps the major contitutional problem of unconstitutional federal taxes, so-called MAGA lawmakers need to prove their worth by doing the following.

The MAGA-controlled House needs to introduce a resolution for Congress to propose an amendment to the Constitution to the states that does nothing more than repeal the 16th and 17th Amendments, arguably relatively litte or ideally no discussion required for such an amendment.

"Congress is not empowered to tax for those purposes which are within the exclusive province of the States." —Justice John Marshall, Gibbons v. Ogden, 1824.

Lawmakers who vote to kill such a resolution will at least let patriots know who to primary in 2024.

42 posted on 01/11/2023 9:06:43 AM PST by Amendment10
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To: Red Badger

Sales taxes are regressive taxes and anyone who knows how their own state’s sales tax works knows they are not universal across the board taxes, but have cut outs for “protected classes” of sales and have some differences in rates for different classes of sales. Anyone who thinks a national sales tax will not have politically meddling all over it is living in dream world.

A better and fairer tax would be a universal one rate fits all flat income tax with absolutlely no exemptions, no exclusions and no deductions. Just a universal tax everyone pays on 100% of their income regardless of source. Such a universal broad flat tax would be lower than any current federal income tax rate.

That tax would eliminate over 100 years of politically meddling in the economy via the tax code. Instead of money decisions being made by businesses and individuals based on what has the greatest tax advantages (and the economy skewed and screwed by that), natural financial considerations would take over, and to massive benefit to the economy.


43 posted on 01/11/2023 9:23:23 AM PST by Wuli
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To: Red Badger

“The IRS as an entity would also be killed by the legislation.”

Pure B.S.

As long as there are direct federal taxes on businesses and individuals, even as a consumption tax, there will be an IRS to administer the collection of the taxes as well as investiage and audit possible breaches of the tax regime.


44 posted on 01/11/2023 9:26:50 AM PST by Wuli
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To: Red Badger

“The “Fair Tax” plan is one that has been touted by conservative lawmakers”

Journalists hate the single word “some” more than any other word in the English language. It’s use denotes that a category of things or people or groups is not universal but is limited to some. But that extra four letters get’s struck by the editors almost universally.

No, not ALL “conservative lawmakers” have touted the so-called “fair tax” and not all “conservative lawmakers” will support it. And for a number of good reasons. It would be a regressive tax and there are better options.


45 posted on 01/11/2023 9:33:55 AM PST by Wuli
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To: shadowlands1960

“We will probably need something like a VAT”

No way. Have you ever been to Europe and shopped there. The VAT tax system there is one reason everything costs way more than they do here.


46 posted on 01/11/2023 9:36:13 AM PST by Wuli
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To: Wuli

I’ve seen it sold as a ‘voluntary’ tax... of course if it is applied to food and other necessities it’s not. States that don’t have income taxes tend to rely on sales taxes... unless you think you can make up the difference with duties and tariffs... either way, you’ll eventually pay.


47 posted on 01/11/2023 9:39:38 AM PST by shadowlands1960 (We live in a world of intolerance masked as tolerance. RUSH LIMBAUGH)
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To: ExTxMarine

“Consumption-based taxing means EVERYONE pay something and everyone pays according to their abilities! Poor people will pay less because they buy less; rich people will pay more because they can afford to buy more!!”

Not when considered on an income basis. The wealthier someone is the less % of their income goes to consumption and the poorer someone is then the greater % of their income goes to consumption - they have little-to-zero left for savings, investment, or making large capital acqqusitions, the spend all they make.

That is what makes sales taxes regressive taxes.


48 posted on 01/11/2023 9:42:48 AM PST by Wuli
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To: Red Badger
The FairTax won't happen without a revolution against the Ruling Aristocracy.

FairTax is indeed the very best idea out there, but be aware of a few info nuggets I'll leave here now:

But the rate is not so much the story here. Well, what other options are on the table? How does someone like me become so radicalized? Attacked while shopping by Antifa, witnessing election fraud firsthand, staring at news of planned "internment camps" for the unvaxxed, watching a Coup d'Etat of a duly erected US President, on and on nonstop.

I was Brazilified before Brazilians were Brazilified.

Class dismissed.

49 posted on 01/11/2023 10:27:34 AM PST by Hostage (Article V)
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To: Red Badger

Deja vu, all over again?

Remember all the times the GOP phony-voted bills to abolish obamycare?


50 posted on 01/11/2023 11:19:04 AM PST by SuperLuminal (Where is the next Sam Adams when we so desperatly need him)
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To: Red Badger

will look good on a campaign brochure but this is about as far as this will go. The Senate and POTUS already have said they will kill the idea.


51 posted on 01/11/2023 11:22:22 AM PST by llevrok (Pronouns: Me/myself/& I)
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To: Wuli

I don’t care about that! EVERYONE MUST PAY SOMETHING!

That is the fairest possible solution because this stupid stepped system is nothing more than BS, finger-pointing about who got more pieces of candy!

It’s not “regressive” it just doesn’t look fair to those who want to be able to keep the classes in-fighting!!


52 posted on 01/11/2023 11:24:28 AM PST by ExTxMarine (Diversity is necessary; diverse points of views will not be tolerated.)
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To: Red Badger

There is NO WAY I would support a “Fair” Tax (national sales tax.) If you think Congress is going to give up their power to use the tax code to drive behavior, I have a bridge I would like to sell you.

Take, for example, Florida’s many sales tax holidays. One time it is for school supplies, another for hurricane supplies, etc. How is it done? A list of UPC (universal Product Code) entries is programmed as tax exempt in the sales register system. Dirt simple to declare what is taxed and what is not on a day by day if not hour by hour basis.

SO ... unless the “Fair Tax” is written into the Constitution specifically forbidding the practice of singling out items for different tax treatment, you can bet your bottom dollar that a variable tax system will emerge out of Congress. 200% tax on firearm UPCs? Just let the RATs take back Congress.

Instead, a Flat Tax system should go in place. Totally flat, no progressive (oh, how I HATE that word) rates.


53 posted on 01/11/2023 11:37:29 AM PST by NonValueAdded ("There should have been an age and risk stratification approach." still true)
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To: Red Badger
Must include repeal of the 16th Amendment and removal of the Constitutional means of levying an income tax. Otherwise, there's nothing stopping some future Congress from re-imposing an income tax.
54 posted on 01/11/2023 12:04:43 PM PST by ops33 (SMSgt, USAF, Retired)
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To: Red Badger

Easy to pass this kind of thing when they know, beyond the palest shadow of a doubt, that the Senate will simply ignore it.


55 posted on 01/11/2023 12:06:20 PM PST by NorthMountain (... the right of the peopIe to keep and bear arms shall not be infringed)
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To: joethedrummer

Term limits have to accompany it. They need to know that they can not make a lifelong career of feeding at the public trough. Rid politics of the self-serving and you’ll get those who want to SERVE rather than rule.


56 posted on 01/11/2023 4:23:37 PM PST by JimRed (TERM LIMITS, NOW! Militia to the border! TRUTH is the new HATE SPEECH.)
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To: ExTxMarine

“I don’t care about that! EVERYONE MUST PAY SOMETHING!”

I agree and a universal FLAT one rate income tax for all, with no exceptions, exclusions or deductions - for anyone - would do that and do that better than any consumption tax.


57 posted on 01/12/2023 7:03:29 AM PST by Wuli
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To: Wuli

I am good with either one. The problem with a flat income tax is that people working for cash (lots and lots and lots more illegals if Biden has his way) are not paying THEIR fair share!

That is the only reason I like a consumption tax.


58 posted on 01/12/2023 8:21:25 AM PST by ExTxMarine (Diversity is necessary; diverse points of views will not be tolerated.)
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To: ExTxMarine

“The problem with a flat income tax is that people working for cash (lots and lots and lots more illegals if Biden has his way) are not paying THEIR fair share!”

That condition can be (1) investigated - requiring proof of legal status for all forms of payment for labor or services rendedered and prosecution for both the worker and the payer, and (2) audited. EVERY form of tax collection requires both the ability to investigate tax fraud (NJ restaurants are nortorious for handling income that is far below the registers’ intake), even sales tax avoidance is invetsogated, audited and prosecuted.

I have friends who run a coffee (just coffee & pastries) house. They pay their employees and pay their own share of the FICA taxes and make all the FICA and income tax withholding for their employees. They told me they know neighboring food service shops near them that pay their employees cash and pay nothing (employer or employee) FICA taxes or employee income taxes. They say NJ is lax in investigating such things. That is not to say it is not possible to find and investigate such things.


59 posted on 01/12/2023 8:41:31 AM PST by Wuli
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