This post is for all who have no idea what the ‘Act’ is all about….those that spend all their time on TicTac or Twatter….or are more concerned with what new song some skinny blonde porks out or what celeb was wearing a sheer dress….the Act will effect all of us mere mortals and you should be aware before you start some dialog with little knowledge.
First of all….what is the Fair Tax Act of 2023?
This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2025, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions.
Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines.
The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury.
Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund.
No funding is authorized for the operations of the Internal Revenue Service after FY2027.
Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.
Now a break down how this act would work and effect you…..
Imagine this: Instead of paying federal taxes to the IRS, you pay them to your local cafe every time you buy a latte or to your supermarket when you make a grocery run — or to countless other businesses when you make purchases.
That’s a future proponents of the Fair Tax Act would like to see. The idea of implementing a national sales tax in lieu of our current federal tax apparatus is once again gaining steam after Rep. Buddy Carter (R. Ga.) introduced the bill to the House of Representatives earlier this month, and House Speaker Kevin McCarthy has agreed to bring the bill to a vote.
“This bill will eliminate the need for the [IRS] entirely by simplifying the tax code with provisions that work for the American people and encourage growth and innovation,” Carter said in an announcement.
The Fair Tax Act is unlikely to become law due to opposition from Democrats, and President Joe Biden has already said that he will veto the bill if it does manage to pass both the House and the Senate.
Still, the proposal has many wondering what a national sales tax or “fair tax” would look like.
I love it when we are told that it is for us that this type of screwing is pointed to….but in reality it is aimed for the rich to pay less taxes than they pay now (and some pay no tax at all)
DO NOT BUY the hype…none of this is for you.
I Read, I Write, You Know
“lego ergo scribo”
4 thoughts on “Fair Tax Act Of 2023”
This sounds to me like deliberate over-complication of something already complicated enough. The bottom line is that everyone will pay more, they always do.
Best wishes, Pete.
That is exactly right. on all counts. chuq
Huh. That almost seems like the Republicans are trying to raise my taxes? Unbelievable (with heavy sarcasm)
It is what they do best….while convincing us they are on our side. chuq