FairTax
FairTax was a single rate tax proposal in 2005, 2008 and 2009 in the United States that includes complete dismantling of the Internal Revenue Service. The proposal would eliminate all federal income taxes, payroll taxes, gift taxes, and estate taxes, replacing them with a single consumption tax on retail sales. A number of congressional committees have heard testimony on the bill; however, it did not move from committee. The legislation was also discussed with President George W. Bush and his Secretary of Treasury Henry M. Paulson.
About FairTax in brief
FairTax was a single rate tax proposal in 2005, 2008 and 2009 in the United States that includes complete dismantling of the Internal Revenue Service. The proposal would eliminate all federal income taxes, payroll taxes, gift taxes, and estate taxes, replacing them with a single consumption tax on retail sales. The proposed Fair Tax Act would apply a tax, once, at the point of purchase on all new goods and services for personal consumption. A number of congressional committees have heard testimony on the bill; however, it did not move from committee. The bill attracted a total of 56 House and Senate cosponsors in the 108th Congress, 61 in the 109th, 76 in the 110th, 70 in the 111th, 78 in the 112th, 83 in the 113th, 81 in the 114th, and 46 in the 115th. To become law, the bill will need to be included in a final version of the U.S. S. tax legislation from the S. Congress. The legislation was also discussed with President George W. Bush and his Secretary of Treasury Henry M. Paulson. The FairTax legislation has been introduced in the House by Georgia Republicans John Linder and Rob Woodall, while beingintroduced in the Senate by Georgia Republican Saxby Chambliss. Linder first introduced the FairTax Act on July 14, 1999, to the 106th United States Congress and a substantially similar bill has been reintroduced in each subsequent session of Congress. Former Speaker of the House Dennis Hastert had cosponsored the bill in the109th Congress but it has not received support from the Democratic leadership.
In the 109 Congress, Representative Dan Boren has been the only Democrat to cosponsor the bill, but he is no longer cosponsoring the bill and has left the Senate. In the 109th Congress,. Representative Collin Zellored of Minnesota and Democratic Senator Zellor of Georgia cosponsors the bill but he has left the Senate and introduced the bill in the 108th Congress. It has not been heard from committee since its introduction in 1999, but the bill has not moved from committee, but it was discussed with George W Bush and Secretary of the Treasury Henry M. Paulson in 2005, and it was mentioned in the 2008 presidential campaign. The plan was created by Americans For Fair Taxation, an advocacy group formed to change the tax system. Supporters contend that the plan would effectively tax wealth, increase purchasing power and decrease tax burdens by broadening the tax base. Because the tax would be collected by state sales tax agencies, tax avoidance would be greatly reduced. President Obama replied in a letter to advocates of this proposal that a consumption tax of this size would be extremely difficult to collect, would lead to pervasive tax evasion, and raise less revenue than the current tax system, leading to an increased budget deficit. It also includes a sunset clause if the 16th Amendment to the US Constitution is not repealed within seven years of its enactment.
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This page is based on the article FairTax published in Wikipedia (as of Oct. 31, 2020) and was automatically summarized using artificial intelligence.
