No more IRS, Income Tax or Death Tax, might happen this year

One of the concessions Kevin McCarthy had to make to receive enough support to be elected Speaker of the house was to allow the advancement of the “Fair Tax” legislation. The discussion has been around since 1999 and a bill was introduced in 2021 by Representative Earl L. “Buddy” Carter, R-GA

What is Fair Tax? Looking at the H.R.25 - FairTax Act of 2021 it is written as:

This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2023, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions. Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines. The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury. Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund. No funding is authorized for the operations of the Internal Revenue Service after FY2025. Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill

What are your thoughts?  Exchange the Federal Sales Tax for the Income Tax you pay.  Disband the IRS and eliminate the need for accountants and CPA’s. There are many Pro’s and Con’s, what do you think? This story was first reported by Fox News. Send me your thoughts.

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