(UnitedVoice.com) – It’s no secret Republicans aren’t fans of the IRS or the current tax system. One of the first big pieces of legislation former President Donald Trump, with the help of his GOP Congress, passed was a massive tax reform bill. The Tax Cuts and Jobs Act (TCJA) was a big win for America’s corporations and investors.
However, as good as the law was, some Conservatives want to pass a tax reform bill that goes even further. In fact, they want to completely revolutionize the current tax system. However, not every lawmaker is on board with the new proposal.
The Fair Tax Act
On January 9, Rep. Buddy Carter (R-GA) introduced the Fair Tax Act of 2023 (HR25). The new legislation would eliminate corporate and individual income taxes, payroll and estate taxes, and capital gains.
Instead, the bill would impose a 23% sales tax on all goods and services. Thirty members of the House support the proposal, including Republican Reps. Scott Perry (PA), Jim Banks (IN), and Jeff Duncan (SC).
Carter said the bill would eliminate the need for the IRS by “simplifying the tax code with provisions that work for the American people.”
However, not all lawmakers agree with him. Experts have also said it would hurt working families, and the 23% would actually be closer to 30%.
“Over My Dead Body”
Senator Jon Tester (D-MT) appeared on MSNBC’s “The Last Word With Lawrence O’Donnell” on January 25. Mediaite reported the Democratic senator said it’s a “really bad idea to put a 30% tax on everything that’s sold.” He said it would hurt families in his state of Montana and across the United States.
Tester also said that he is going to filibuster it, but it won’t be silent. He said he intends to “talk ‘til the end of time because [the bill] is really, really bad policy.” The Democrat said it would pass “over my dead body.”
Republicans are also backing away from the legislation. Speaker of the House Kevin McCarthy (R-CA) has not lent his support to the bill. Rep. Don Bacon (R-NE) told The Hill that he doesn’t “think it’s a wise thing” or “smart politics or policy.”
Experts Weigh In
Americans for Tax Fairness Director Frank Clemente told The Hill that creating a system where the only source of public tax revenue was a sales tax would put the burden on people in the lower and middle classes.
Clemente explained that a family of four earning $50,000 would see every single dollar of their income taxed because they have to use all of it to survive. But someone who makes $1 million per year is saving a portion of their pay, which means “not all of that income is going to end up being taxed as a sales tax.”
Copyright 2023, UnitedVoice.com
