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.
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.
"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.
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.
“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.
“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.
“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.
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.
“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.
FairTax is indeed the very best idea out there, but be aware of a few info nuggets I'll leave here now:
The last rate was 23% on everything you as a consumer buy, whether gas at the pump or a plumber you call for help. Rate now could be 30%.
23 Effing percent, and I can see a lot of you shaking your heads saying, "No Effing Way!"
But not so fast Sparkies, that 23% is ALL THE HIDDEN SUPPLY CHAIN B2B TAXES eliminated and pushed to the end of the supply chain where you the consumer are now shocked to see it. It's hidden now, but a consumption flat tax will bring it out in the open and leave you screaming as it hits you between the eyes.
Why aren't you screaming now? Because it's hidden, you don't see it, ignorance ain't bliss here, but a hidden poison makes you put your head down and graze in the human pasture as days go by.
What if Americans storm the Bastille and pass a flat consumption tax no matter how shocking the rate? What if? Won't happen, but just toss the idea out there and ask questions what happens next. Is there anything good we can foresee coming from the shock of a 23% tax?
Let's put it this way, say your doctor tells you your cholesterol is off the charts and youre a walking heart attack waiting to happen. What do you do? You change, and your elected lawmaker (ha-ha "elected" ha-ha, yeah bullsh*t), your installed representaion agent says we have to have truth in food labeling and such ... and well, that's a good thing. It is, if it can be trusted.
So, you're there looking at that 23% and you start cussing so bad you'd make a drunken sailor blush. You might even make President Trump cover his ears. So, you've gone full Tourette and you call your Congress Lizard and let 'em have it!
And said Lizard is running for cover trying to think of a way to hide the damn thing, like it was once. But oh no, the flat tax is now law and Americans ain't going back to hidden tax scams.
So, what to do?
Got to cut the rate! What? Cut government spending? Getoutahere! GTFO! Now you know why I said in the 1st sentence it will take a revolution to overthrow the DC ruling schmucks before a flat tax will ever be a part of life.
Inside baseball:
See this guy?
LARRY EFFING FINK
This is known as a Globalist Central Banker.
This strain of Globalist Feces is what has a computer linked to the Federal Reserve that can click billions of $$$ out of thin air, lent at 0% to all central bankers with privileged access computers connected to these Fed Reserve special liquidity facilities.
Ok, so central bankers dial up billions at 0% and lend it to Treasury at 7%.
Ha-ha-ha! You serfs are going to pay this interest! Unless the Ruling Class can get their lawyer thug lobbyists to strongarm your Congress critter to raise the DEBT CEILING in which case standby for inflation. You're going to pay one way or the other
I was Brazilified before Brazilians were Brazilified.
Class dismissed.
Deja vu, all over again?
Remember all the times the GOP phony-voted bills to abolish obamycare?
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.
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!!
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.
Easy to pass this kind of thing when they know, beyond the palest shadow of a doubt, that the Senate will simply ignore it.
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.
“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.
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.
“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.
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