Kevin McCarthy Introduces “Fair Tax” Which Would Abolish Federal Income Tax

[mystery-ak]

Kevin McCarthy Introduces “Fair Tax” Which Would Abolish Federal Income Tax
By Collin Rugg January 19, 2023

Speaker of the House Kevin McCarthy is preparing to have the House vote on his new “Fair Tax” which would abolish the current federal income tax and replace it with a national sales tax.

“To become speaker of the House, Kevin McCarthy reportedly promised a floor vote on the Fair Tax Act,” the National Review reported. “The bill would replace the existing income, payroll, and corporate taxes with a new national sales tax. The bill says the sales-tax rate will be 23 percent. What it means is that a product that costs $100 without the tax will cost $130. (The $30 in taxes is 23 percent of the total price of $130.) Most people will think of that as a 30 percent tax.”

The proposal would give relief to many Americans who are tired of seeing their hard earned money disappear from their paychecks.

Not all Republicans are on board with the plan.

“This is a political gift to Biden and the Democrats,” said Grover Norquist, president of Americans for Tax Reform (ATR), a taxpayer advocacy group. “I think that this is the first significant problem created for the Republican Party by the 20 people who thought that there was no downside to the approach they took.”

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[Free Vulcan]

It won't go anywhere and everyone knows that, but I guess it deserves a couple of points for being put out there for the public to see.

Who knows, the idea may catch fire from it.

[DefiantMassRINO]

A national sales tax, WTF?

The last thing Americans want is giving the Federal Government even more taxation powers.

Just lower the damned payroll taxes.

[Kamaji]

A national sales tax, WTF?

The last thing Americans want is giving the Federal Government even more taxation powers.

Just lower the damned payroll taxes.

A national retail sales tax has been a constant bogey-man for the past several decades.

[DefiantMassRINO]

A national sales tax is an incremental step towards a European-style Value-Added-Tax (VAT).

Reduce the payroll income tax.  Reduce Federal spending.  Stop wasting time creating new schemes to bestow even more power unto the SWAMP.

[Kamaji]

A national sales tax is an incremental step towards a European-style Value-Added-Tax (VAT).

Reduce the payroll income tax.  Reduce Federal spending.  Stop wasting time creating new schemes to bestow even more power unto the SWAMP.

Absolutely.

[Bigun]

A national sales tax, WTF?

The last thing Americans want is giving the Federal Government even more taxation powers.

Just lower the damned payroll taxes.

The FairTax, if enacted, would very greatly REDUCE the taxing powers of the federal government not expand them!

[Bigun]

A national sales tax is an incremental step towards a European-style Value-Added-Tax (VAT).

Reduce the payroll income tax.  Reduce Federal spending.  Stop wasting time creating new schemes to bestow even more power unto the SWAMP.

The FairTax is no such thing! In fact, it would get rid of the VAT we already have called the Corporate Income Tax.

[bilo]

The FairTax, if enacted, would very greatly REDUCE the taxing powers of the federal government not expand them!

 

The govt would not be able to determine what can be deducted and how much can be deducted from your income tax liability. Everyone would pay tax on their purchases.

[Kamaji]

Has anyone ever sat through a state sales and use tax audit?  Has anyone tried to work out how a particular state's sales tax applies to a particular set of facts?  Has anyone ever tried to work out how a particular exemption from sales tax, stated in general terms, applies to their particular set of facts?  Has anyone tried to make sense of what services a state does, and does not, subject to sales tax?

Now multiply the amount of work, intrusiveness of the audit, and time spent dealing with sales tax matters by several orders of magnitude, and one can begin to get a sense of what a national retail sales tax would entail.

On top of which, the amount of fraud would be substantial.

[Bigun]

Has anyone ever sat through a state sales and use tax audit?  Has anyone tried to work out how a particular state's sales tax applies to a particular set of facts?  Has anyone ever tried to work out how a particular exemption from sales tax, stated in general terms, applies to their particular set of facts?  Has anyone tried to make sense of what services a state does, and does not, subject to sales tax?

Now multiply the amount of work, intrusiveness of the audit, and time spent dealing with sales tax matters by several orders of magnitude, and one can begin to get a sense of what a national retail sales tax would entail.

On top of which, the amount of fraud would be substantial.

BS! Texas has no such problems!

[Hoodat]

Kevin McCarthy Introduces “Fair Tax” Which Would Abolish enhance Federal Income Tax

There, fixed it.

[Bigun]

There, fixed it.

No! You did not fix it. How do you enhance something that no longer exists?

[Hoodat]

No! You did not fix it. How do you enhance something that no longer exists?

Does Amendment XVI still exist?

[Bigun]

Does Amendment XVI still exist?

Nope! Not for long anyway even though that has nothing to do with an income tax on wages.

[Hoodat]

Repeal the 16th Amendment first.  Then we can talk.  But as long as the 16th Amendment remains in place, I don't trust the government one iota when it comes to implementing both taxes.  (See:  Herman Cain 9-9-9 plan)

[catfish1957]

A national sales tax, WTF?

The last thing Americans want is giving the Federal Government even more taxation powers.

Just lower the damned payroll taxes.

I hear ya.....

But a mid March to mid April witout jacking with Schedule Alphabet, Form-XXX, and 200-300 pges of records every year does have some appeal. 

[christian]

Odd how resistant people can be in refusing even simple principals.  For DECADES now, when politicians speak of 'fair' unfair rape follows shortly thereafter.   Lots of mega legislation gets passed but you have to let it get passed to find out hw raped yer gonna get.  Move beyond child level politics and move up to the adult level!
 

[christian]

Odd how resistant people can be in refusing even simple principals.  For DECADES now, when politicians speak of 'fair', unfair rape follows shortly thereafter.   Lots of mega legislation gets passed but you have to let it get passed to find out how raped yer gonna get.  Move beyond child level politics and move up to the adult level!
 

[Smokin Joe]

Nope! Not for long anyway even though that has nothing to do with an income tax on wages.

I don't consider wages "income" anyway. It is an exchange of skill and labor for fun tickets, value for value, ideally speaking.

[jafo2010]

I doubt anyone here will argue that the current Federal Income Tax Program is fair.  I know too many folks that make high incomes and pay little to no taxes.  One architect who made a six figure income most of his life and never paid a dime, never filed a single return with the IRS.  NOT ONE!!!

I know a woman that makes in cash the same amount of money as my wife, close to 90,000 in cash, claims an income under $9,000, is on Obamacare, lives in a $1 million dollar home, tools around in a new BMW, while we pay tens of thousands in income tax, $500 per month in premium for healthcare, and drive two cheap cars, neither new.

The time has come for Congress to make the taxing of Americans more fair.  I support a fair tax 100% if it means the elimination of the Federal Income Tax.  23% is a bit abusive.  I have always liked Herman Cain's approach to leveling taxes.  Whether it is 9 - 9 -9 or 10 - 10 - 10 or whatever, I prefer that concept over anything else.  And I believe we need to end the IRS in its  current form.  Too abusive an organization, which can readily become political, as we have witnessed in the past.

But more important than anything are two primary things Congress must do..

1.  TERM LIMITS

2.  Mandatory balanced budget, only exception during times of declared war by Congress.  We have not had a declared war since 1941.  Also mandatory as long as we have national debt is the mandatory requirement for a plan to wipe out the debt.  MANDATORY!!!

Make these self serving elected pukes in Washington do their damn job!!!  They haven't been doing it for 50 years!!!

 

[240B]

It's a common European system. They call it VAT (Value Added Tax).
The best part is everybody pays, no matter how wealthy. And the tax is included in the price. If the stickers says $5, then you pay $5. Unlike the American system today in which the sticker price has no relevance to how much you will actually pay.

BTW: This confuses the hell out of foreigners who think it is insanity.

[Kamaji]

I don't consider wages "income" anyway. It is an exchange of skill and labor for fun tickets, value for value, ideally speaking.

[EdinVA]

Income tax is nothing more than a social engineering tool with no throttle.  The trick is, how do we replace/change it and avoid the same trap?

[Hoodat]

Income tax is nothing more than a social engineering tool with no throttle.

It doesn't have to be.

The trick is, how do we replace/change it and avoid the same trap?

Make it a flat tax.  Everyone pays.  Everyone becomes vested.