Republicans in the United States House of Representatives, who took control of the congressional chamber this week, are set to vote on their first bill, which calls for abolishing the Internal Revenue Service and individual income taxes.
Under the Fair Tax Act, the IRS would be dissolved and individuals would cease paying income, gift and death taxes. Instead, taxpayers would pay a sales tax – or consumption tax – which would, in theory, give them a wage bump and increased cash flow.
The bill is coming to the House floor for a vote as part of newly-minted GOP House Speaker Kevin McCarthy’s side deals with the right-wing Freedom Caucus to clinch the role in last week’s highly contested fifteen-round vote for speaker.
As Republicans prepare for their first floor vote, the White House has said President Biden opposes the bill.
“President Biden adamantly opposes House Republicans’ plans to force an unprecedented tax hike on to middle-class families in exchange for yet more tax welfare for the rich and big corporations,” said deputy press secretary Andrew Bates to Fox News Digital.
The bill would also stop the Biden administration from carrying out its plan to clear the IRS’ backlog by hiring 187,000 new agents to target tax enforcement on the wealthiest Americans and corporations.
Buddy Carter, who introduced the bill, said in a statement, “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. Armed, unelected bureaucrats should not have more power over your paycheck than you do.”
ARTICLE: LAURA SPIVAK
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: ACCOUNTINGTODAY.COM
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