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| 3.8.23
BILL: GOP's Fair Tax Act Would Abolish IRS, Eliminate Income Tax
Do you support or oppose the Fair Tax Act?
House Republicans are voting on a bill that would abolish the Internal Revenue Service (IRS). The Fair Tax Act would also eliminate all federal taxes in favor of "FairTax"-- a 23% national retail sales tax (though, in reality, it's closer to a 30% sales tax).
What's the story?
- The motion to abolish the IRS was part of the concessions that Rep. Kevin McCarthy (R-CA) made with the House Freedom Caucus in order to get their votes for the speakership.
- The Fair Tax Act was reintroduced by Rep. Buddy Carter (R-GA) and currently has eleven co-signers. Versions of the bill have been introduced in almost every Congress since 1999.
- Carter said:
"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.”
- Critics point out that the burden would disproportionately fall on lower-income Americans, who will be spending a larger percentage of their income on sales taxes, and will ultimately only benefit corporations and high-earners and shift taxes from the rich to the poor.
- Roughly 40% of American households currently pay no federal income taxes due to low income. Under the new sales tax, they would be faced with the burden of higher taxes.
What’s in the Bill?
Abolishment of personal and corporate income taxes
- These taxes will be replaced by a national simplified consumption (sales) tax, rather than being contingent on a worker’s income. The bill would allow the Treasury to administer the sales tax in all states, even those that currently have no sales tax.
Shutters the IRS
- Because states already collect sales tax, proponents of the bill argue that the IRS could be abolished as states could simply collect additional sales tax for the federal government and send the funds to the U.S. Treasury.
Abolishes death, gift, and payroll taxes
- All of these taxes would be eliminated and replaced by one sales tax.
A 23% federal sales FairTax
- Supporters of the bill say that 23% is comparable to a 15% income tax plus the 7.65% payroll tax that employers currently pay.
- Calculated a different way, the tax actually comes out to 30%--under the Fair Tax Act, if you buy something that costs $100 pre-tax, you would pay $30 of national sales tax.
Provides a prebate
- The act would provide a monthly stipend to offset the tax liability for essential goods and services. The stipend would be available to every American, regardless of income.
Do you support or oppose the Fair Tax Bill?
—Emma Kansiz
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The Republican House is leaderless, they will not get any of their specific legislation passed so they are using their offfices as a 'stage show' to propose presposterous legislation to appeal to the MAGA-mob.
They are also doing this with their vengence intitatives against anyone that would uphold the rule-of-law or the Constitution in finding that Republican congresspeople violated either or both.
Another part of this is to neuter the DOJ as their investigations could prove their alleged law-braking or their role in aiding and abetting the insurrection.
Two years of this crap should help clean the House of the radical right MAGA morons who seem to be in control the House Republicans, as well as those House Republicans who accept their nonsense.
It is time to really form that third political party, because the Republican Party is going to self-destruct soon and the country needs to build an ethical Conservative Party to bring principled balance back into governance.
The proposed Fair Tax legislation is a retread from 1999 when it was originally proposed in Congress by Linder (R-GA) and has been reproposed in 2005, 2008, and 2009. It’s another variation on the trickle down theory claiming it would save money for businesses that would be passed along to the consumer in lower cost goods & services which we’ve seen lately doesn’t happen when companies increase prices more than costs to increase profits, stock buy backs and executive compensation,
The concept originated in 1995 by Americans For Fair Taxation (AFFT) founded by three Houston entrepreneurs originally as a research organization based on polling and focus group studies. It would apply a tax, once, at the point of purchase on all new goods and services for personal consumption but doesn’t apply to business purchases.
Excluded are purchases of used goods, exports, all business transactions, investments (stock, bonds, corporate mergers and acquisitions, capital investments, educational tuition)
It requires a repeal of the of the 16th amendment (1913) to remove the IRS.
In my opinion it would turn the US into a financial feudal system where W-2 workers pay all the taxes at 23% (real rate of 30%) of all their purchases, while 1099 earners pay nothing as their purchases are business expenses.
The rate will need to be 10% higher to replace state taxes as well without a federal income tax to base state income taxes on.
Advantages
(1) Eliminates annual tax preparation
(2) Eliminates the IRS
(3) Boosts income & consumer spending
Disadvantages
(1) Unfair to 1st generation seniors who paid income taxes all their lives and would have to start paying higher sales taxes in addition to the taxes they've already contributed over decades
(2) Needs a new agency to enforce it
(3) Sales tax rate would be high (23% with an effective rate of 30%) to replace lost income tax
(4) Would need to add another 10% to replace state income tax
(5) How is Social Security & Medicare calculated & funded?
“Fair Taxation developed the Fair Tax plan. It would require the repeal of the 16th Amendment, and it would disband and defund the Internal Revenue Service (IRS).”
https://fairtax.org/about
https://www.archives.gov/milestone-documents/16th-amendment
https://www.thebalancemoney.com/what-is-the-fair-tax-plan-pros-cons-effect-3305765
Yes, by all means, ditch the income tax A.S.A.P! The sales tax is much simpler to collect, easier to enforce, and hits the rich because they'd pay tax on every expensive toy that they buy! The lower income folks can be protected by exempting the basics, like food, clothing (no single article of clothing under $100 would be taxed) and rent. You'd need far fewer IRS agents to enforce it, since you'd only be collecting taxes from businesses, not individuals. There are a lot fewer businesses than there are individual taxpayers, so just by the numbers, enforcement is easier (I'm guessing at a150 million taxpayers versus possibly 50 million businesses, but you get the idea). We certainly wouldn't need 87k more IRS agents to enforce a sales tax!
The only down side is that the Government would lose a big stick to prosecute Mafia Dons and Dope Dealers (it's how they finally got Al Capone), but that's a small price to pay to get the Government off of our backs! The only reason that it probably won't happen is that too many vested interests make far too much money shielding income from the IRS in the present system (lawyers, accountants, Turbo Tax, billionaires) to give up the present mess that is the Federal tax code!
I would have to read this proposal over, a couple of times. So, why do have a fishy feeling about this. Why do I have a false sensation about this proposal. Why do I get the feeling the worker who has federal income tax taken from their paychecks and contractors who have to pay quarterly estimates, will get screwed on this and big businesses walk away free.
I'm not opposed to tax reform, and I would certainly be happy to get rid of the income tax, but a 30% sales tax? How would impact inflation? How many Americans could immediately afford to pay that much more?
This seems extreme and there has to be a better way. I also notice that it will benefit corporations, and I'm against corporate welfare.
In addition rich people will not be able to cut their taxes. For instance a rich person can afford a brand new electric vehicle for say &75,000 dollars. The federal tax would be $22,500 for a total of $97,500
Plus the state and local taxes will stil be there. In my city in Louisiana city tax is 10% which add another $$7,500 to the bill.
The Louisiana state tax on a new vehicle is 4.45% which adds another $3,350 to the bill.
so that $75,000 vehicle now will cost $109,000 for that rich person.
I strongly oppose the GOP's Fair Tax Act Would Abolish IRS, Eliminate Income Tax.
I dislike taxes as much as anybody; I don't like the dentist much too but I like having teeth more. Passing the Fair Tax Act would only benefit the wealthy while everyone else would pay more. I thought the gop wanted to eliminate the National debt? This seems like it would make that way worse. TRICKLE DOWN ECONOMICS DOES NOT WORK
The IRS needs extra funding to upgrade computers and go after the wealthy who aren't paying their share of taxes taxes, hurting taxpayers and government alike.
Vote NO.
This does seem to be about the same as I am paying as a middle class person. It would encourage less waste and more savings which is environmentally friendly and would force everyone e to pay their fair share
Just like I said, the Republicans are so STUPID.
We need to boost the efforts of the IRS to find the cheaters that don't pay their fair share!
90% of the population pays their fair share cause they have no choice!
The wage earners, and businesses are the the ones that need to be checked on, as they control 80% of the money.
While I think this is getting a bit closer still no go. Americans can't afford that kind of sales tax. Maybe a smaller 5% tax along with corporations still paying taxes just not the workers.
Seems a Flat Rate Tax on Consumer Goods is THE MOST REGRESSIVE TAX POSSIBLE.
It will hurt low wage workers the most. And it spares the wealthy from paying a fair percentage of their incomes!
The mere fact that republicans actually put this plan in writing demonstrates just how deep they are indebted to the wealthy!
How about a flat 20% tax on corporations plus a 20% sales tax and corporate bonus tax. That would sure cut down on corporate perks. Add a 20% tax for the masses excluding taxes on food and medicine. Big problem: Many would choose to rent cars, homes and other large items rather than buy. So we'd have to add a renters tax. Making it practically impossible for low income families to live.
A fair tax is needed that way every one pays their fair share .
The deficit is a direct result of Trump's tax cuts for corporations and the one percent. If they don't pay their fair share, military and social programs will be cut, which both feed corporations, the wealthy and the Wall Street. This is a spiraling downhill or fast track to the bottom. It you notice, Russia military and social support programs is not capable to with stand even a war or basic infrastructure. This is a result of corruption and oligarchs greed, not supporting the infrastructure of their country, they didn't pay the fair share and invest!
Nothing "fair" about this at all. This tax would add an additional financial burden to the American people, especially middle and lower income people, while allowing corporations to get by with little to no tax responsibility. And this shit about a rebate on essential items-like food, medicine would mean that people would have to apply for these rebates, unless the rebates were given at the cash register, thus imposing another step to regain your money. While, the current tax system is full of holes and allows big corporations and the wealthy to get by with paying little to no taxes, this proposed system would make the problem worse. Furthermore, the additionl of IRS workers is aimed at holding big corporations and the wealthy more accountable for their taxes, not screwing middle and lower income people more than they already are. You know never to trust anything that a Republican proposes as 9 xs out of 10 it's going to screw the average person while providing an advantage to the wealthy/big corporations.
Abolish the IRS? Absolutely not. How about abolishing the communist Republican Party as a terrorist group, supporting Russia war!
Once again trying to figure out a way to get the middle and poor classes to for the bill for our country's infrastructure. When the hell will we start making billionaires pay their fair share?
Make the Corps and B/Millionaires pay their fair share or let ME DEDUCT office/school supplies, all medical, all legal, all personal home cleaning services, etc. that you (the Rich, Privileged, mostly White, (OK, not all) bigots, Private/Corporate legal 'whatever's' who get to fully deduct what I don't get to currently, so I TOO, DON'T HAVE TO PAY TAXES. And then watch our country collapse financially, and our PRIVILEDGED/RICH find out what it is to be 'common folk' WITHOUT that MONEY, MUCH LESS 'LAW AND ORDER', and then watch them RUN AND HIDE! Seems most 'religious' orgs seem to think they now be able to dictate policy (heck, these groups cheer about how they, like Crow and Leo HAVE BOUGHT JUSTICE THOMAS), but don't have to pay taxes like I/We do. If christian/evangelicals want elevated 'power', then TAX THE CHURCH like the rest of us!
So cruz, cornyn, crenshaw, get off your asses!
So phony the Republicans want to destroy all departments of government except the pentagon. The rich own 95% of our politicians. They need to be ousted! They're traitors! They won't rebuild our infrastructure! They poison our water, air and land worse and worse year after year! They have very small brains! They have no morals! They're going to be punished by God! They're nothing but psychos! They have to be put down or else we let them go on and therefore we are consenting to the schemes of the devil! They're evil! They want to destroy earth! Open your eyes! Stop doing the devils work! I went be happy till your dealt with! No fascism! America needs leaders!
The gop are busy wrecking every law or institution that restricts them from their manifesto lie cheat steal delay deny obfuscate ban negate etc especially at the state level
This country is permanently altered and disjointed. Where no one outside America could, the gop has almost completed the task of destroying it from within
Shame on congress
Shame on the judiciary
yes support
The rich people don't pay taxes thanks to the Republicans.
As much as no one wants to see their earnings, merger or huge, given to the government to administer...the question is not to abolish the agency but to fairly take and distribute the funds. Even, maybe especially, the wealthy benefit from government services. They always seem to forget what they are actually getting.
The main issue in my mind is how Congress writes the laws the the agency administers. Example: when an individual is found to have frauded another and has received a judgement to pay the injured party, not only is the fraudulent party able to file bankruptcy, but anything the harmed party gets is TAXED as ORDINARY income (unless it's for bodily harm). How is that fair when the harmed has probably lost nearly everything? I'm guessing, since so many in Congress are in business or are wealthy in their own right, they actually wanted to protect their future, not necessarily that of the public...