U.S. Rep. Earl Carter (R-GA) introduced a bill that would replace the current tax code with a national consumption tax.
His bill, the Fair Tax Act (H.R. 25), would eliminate all personal and corporate income taxes, gift taxes, and the payroll tax. It would also eliminate the need for the Internal Revenue Service. It would repeal the current tax code and replace it with a single national consumption tax – a tax on goods and services.
“Cosponsoring this Georgia-made legislation was my first act as a Member of Congress and is, fittingly, the first bill I am introducing in the 118th Congress,” 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 with provisions that work for the American people and encourage growth and innovation.”
U.S. Reps. Andrew Clyde (R-GA), Jeff Duncan (R-SC), Kat Cammack (R-FL), Scott Perry (R-PA), Bob Good (R-VA), Thomas Massie (R-KY), Ralph Norman (R-SC), Bill Posey (R-FL), Gary Palmer (R-AL), Jim Banks (R-IN), and Barry Loudermilk (R-GA) cosponsored the bill.
“As a former small business owner, I understand the unnecessary burden our failing income tax system has on Americans. The Fair Tax Act eliminates the tax code, replaces the income tax with a sales tax, and abolishes the abusive Internal Revenue Service. If enacted, this will invigorate the American taxpayer and help more Americans achieve the American Dream,” Duncan said.