Most Americans would say that the current United States tax code is far from perfect and needs a number of reforms. To this end, new proposed Congressional legislation would abolish the existing code.
The Fair Tax Act, proposed by Representative Earl L. “Buddy” Carter (R-GA) would ban income, payroll, estate, and gift taxes, instead opting for a 23% flat rate sales tax nationwide.
The proposal would also eliminate funding for the Internal Revenue Service (IRS) after fiscal 2027.
Ironically, the IRS received $80 billion in additional funding as part of the Democrat-backed Inflation Reduction Bill. The funds were used to hire additional staff and upgrade technology ahead of the current tax filing season, which officially began on January 23.
The Washington Post shared Capitol Hill chatter regarding the divisive bill.
“You would actually get to see … what you’re actually earning every week in your paycheck,” bill supporter Representative Andrew S. Clyde (R-GA) said earlier this month.
Just this week, however, House Speaker Kevin McCarthy (R-CA) seemed to respond to a question about whether he supported the Fair Tax Act by curtly saying, "No."
Furthermore, in a joint press conference on Wednesday, January 25, Senate Majority Leader Charles E. Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY) publicly opposed the Fair Tax Act, saying it would result in "dramatic tax hikes for almost every American."
It's also worth noting that McCarthy is not the only Republican who opposes the bill.
Per The Hill, House Majority Leader Steve Scalise (R-LA) does not support the passage of the Fair Tax Act. “I don’t think it’s a wise thing,” Representative Don Bacon (R-NE).
For the moment, until the bill comes up for a vote, scattered GOP support of the bill is leading to a great deal of tension on Capitol Hill.
What do you think about the Fair Tax Act?
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