GOP Aims To Defund And Abolish The IRS
Last Monday, the House passed a bill that would strip the IRS of much of the $80B increase that was signed into law last year. Given the fact that the Senate is still in Democratic hands, it probably won’t go any further.
This year’s budget was signed into law by a lame duck Congress a couple of weeks ago, which provided the initial funding increase for the IRS this year. In passing this new bill last Monday, House Republicans have signalled that they won’t allow the funding increase to continue in next year’s budget.
In further news, House Majority Leader Kevin McCarthy agreed to allow a vote on what is commonly known as the Fair Tax Bill to proceed. This bill would abolish the IRS as we know it and institute a national 23% sales tax on all business transactions.
This bill would repeal the entire IRS Code. Given the fact that states already collect sales tax, in theory only, it would eliminate the entire IRS.
In fact, the Feds would still need to collect the new tax. Those taxes would need to be administered, reviewed, and audited, so any talk of the Service’s complete elimination is pure fantasy. Another difficulty in the plan is the five states that don’t collect sales taxes in the first place.
But if this were to pass, it would do away with personal income taxes, business income taxes, the estate tax, gift taxes, and payroll taxes altogether.
Let me leave you with this.
This isn’t the first time that a national sales tax has been promoted. Every decade or so, something like this is introduced in Congress. It gets a lot of press and ends up dying on the vine.
Other countries, like Mexico, have similar systems that work quite well. The question becomes why wouldn’t something that fairly spreads taxes across all of America, not be passed into law?
Proponents of the bill talk about the money that would be saved in eliminating the majority of the Service. Also that it would eliminate the loopholes wealthy individuals use to reduce their taxes and that charging tax on every transaction across all walks of life, would be fair and reasonable to all American citizens.
Opponents of the bill say that it imposes taxes on the poor who cannot afford them. Only 60% of Americans pay income taxes in the first place. A lesser percentage pay payroll taxes, given those who don’t work, or others who work for cash.
Whichever side of the fence you land on is up to you.
By definition, it will probably never pass with a Democratic led Senate. I just thought you should know something about it before it ends up on the six-o’clock news.
We’re all going to get through this. Let’s get through it together.
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