{"id":28593,"date":"2023-02-07T04:27:17","date_gmt":"2023-02-07T09:27:17","guid":{"rendered":"https:\/\/www.workingteddy.com\/?p=28593"},"modified":"2023-02-07T04:27:17","modified_gmt":"2023-02-07T09:27:17","slug":"a-30-national-sales-tax","status":"publish","type":"post","link":"https:\/\/blog.beanybux.com\/a-30-national-sales-tax\/","title":{"rendered":"A 30% National Sales Tax"},"content":{"rendered":"

A 30% national sales tax? <\/strong><\/span>
\nAbolishing the IRS?<\/strong><\/span><\/p>\n

What the FairTax Act of 2023 would do.<\/p>\n

There is hardly an area of American life more subject to partisan debate than the tax code<\/strong><\/span>. Democrats want to raise taxes. Republicans want to slash them. At least that’s how the well-worn narrative goes. But, in actuality, debate over the IRS and how much Americans should fork over to Uncle Sam can be more complicated.<\/p>\n

Not all lawmakers of a certain caucus align. Take, for example, the FairTax Act of 2023, a new bill championed by some GOP House members, but not all. The idea for the legislation \u2014 a universally applied sales tax on consumer goods and services \u2014 has been around for a long time. Perennially, it gains new vigor, as it has this year.<\/p>\n

Here’s everything you need to know about the proposed bill, and how it would work.<\/p>\n

What is the FairTax Act of 2023? <\/strong><\/span>
\nThe ‘FairTax Act of 2023,’ a bill introduced in early January by U.S. Rep. Earl \u201cBuddy\u201d Carter (R-GA) proposes a national sales tax on the use or consumption of taxable property or services. The sales tax would be levied in place of current income taxes, payroll taxes, and estate or gift taxes which are outlined in Subtitles A, B, C and H of the Internal Revenue Code of 1986.<\/p>\n

The proposed legislation would repeal those subtitles and instead enact a new Internal Revenue Code: The Internal Revenue Code of 2023.<\/p>\n

Though the bill outlines a 23% tax rate, the “gross payment” or the payment for both taxable property and services, combined with federal taxes is actually closer to 30%.<\/p>\n

The bill, a brainchild of one faction of the Republican party, does not yet have broad GOP support, and is unlikely to pass. It would need to not only make it through the House but also the Senate which has a Democratic majority. President Joe Biden has already said he will veto the bill should it defy odds and reach his desk.<\/p>\n

How does FairTax work?<\/strong><\/span>
\nEnacting the ‘FairTax Act’ would usher in a complete overhaul of the tax system.<\/p>\n

The sales tax levied would effectively replace both payroll and income taxes. The proposed rate is 23% for 2025, to be adjusted in the subsequent years. It would fall to the states to administer, collect, and remit the sales tax to the Treasury.<\/p>\n

There are some exceptions to taxable property and services including:<\/p>\n