Rep. Buddy Carter, R-Ga., reintroduced a bill Monday that would replace the current federal tax structure with a national consumption tax and lead to the elimination of the Internal Revenue Service.
Carter first introduced the Fair Tax Act in January 2021, but it failed to make it out of the Ways and Means Committee. His action comes on the heels of the House voting 221-201 on Monday night to rescind funding for the hiring of 87,000 additional IRS agents stipulated under the Inflation Reduction Act, which became law last year.
"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," Carter, a member of the House Budget committee, said Monday in a news release. "Armed, unelected bureaucrats should not have more power over your paycheck than you do."
Speaker Kevin McCarthy, R-Calif., reportedly agreed to allow the bill to reach the House floor as part of concessions he made with House Freedom Caucus members to secure the speakership. The bill would eliminate all personal and corporate income taxes, the death tax, gift taxes, and the payroll tax, with the national consumption tax to be administered by the states.
"I'm very proud to once again co-sponsor the Fair Tax Act," said Rep. Kat Cammack, R-Fla. "We've seen a continued growth of the IRS and a persistent punishment of hardworking Americans via the tax code. What we're calling for is a simplified and fair code that works for all, not just some.
"I urge my colleagues to support this common-sense legislation that fights back against the weaponization of the IRS and stops punishing those who work hard to succeed."