The Fair Tax Act – Very Unlikely, but Interesting
When Republicans took control of the House of Representatives, one of the first initiatives they vowed to tackle was the IRS. The proposed legislation entitled, The Fair Tax Act, would completely remake the current tax code. It would get rid of income tax, payroll tax, corporate taxes, gift taxes, and death taxes. These would be replaced with a nationwide consumption or use tax on goods and services purchased. This bill would also get rid of the IRS altogether.
In a statement introducing this legislation, Representative Buddy Carter (R-GA) stated, “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 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.” 1
This legislation has virtually no chance of passage as Democratic lawmakers passed The Inflation Reduction Act in 2022 which gave $80 billion to the IRS and provided for hiring 87,000 new agents. Democratic lawmakers currently control the Senate and President Biden has also announced that he opposes the bill.
For more information and help with your tax situation, please reach out to the Professionals at The Center for Financial, Legal, & Tax Planning Inc., at (618) 997-3436.