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House GOP seeks to abolish IRS, replace income tax with consumption tax

Fifty-four House Republicans on Thursday reintroduced legislation that would terminate the IRS and replace the system of income taxes on people and corporations with a consumption tax.

The FairTax Act, from Rep. Rob Woodall (R-Ga.), would abolish the 16th Amendment, which was ratified 100 years ago this February. That amendment gives Congress the power to impose income taxes without having to spend the revenues evenly among the states.

Woodall's bill, H.R. 25, would replace the current tax system with a 23 percent consumption tax on all new goods and services. He said Thursday that this change would eliminate the need for a complicated tax code, and would be the kind of tax reform that helps reinvigorate the economy.

Read more: http://thehill.com/blogs/floor-action/house/275697-house-gop...

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I looked it up, in Australia they have a GST

and that IS a sales tax. And that is what I was talking about, just couldn'r remember what it was called there.

If Tyranny and Oppression come to this land, it will be in the guise of fighting a foreign enemy.
James Madison

They cannot be trusted !!!

First off, this is from 2009. Maybe he's getting more sponsors, but it's doubtfull this gets anywhere -- as far as what it pretends to be.

Second, the Congress cannot combine ONE bill to both repeal the 16th Amendment AND institute a national sales tax. Amending the Constitution requires 2/3 of both houses, NO action by President (much less Barry-the-Usuper), and 3/4 of state legislatures. That would take a LOOOOOOOOOOOOOOOONG time and the media howels would be DEFENING.

On the other hand, implementing a national sales tax would be EASY (not a good idea, but easy). Just simple majority in both houses -- or maybe even Nancy's favorite ("the bill is DEEMED passed, because we have to pass it to see what's in it") -- and the Barry-the-Usurper would probably sign it, though why bother?

Anyway ... even back in 2009, this was NOT just ONE bill. HR 25 was to add a national sales tax and repeal current Title 26, but HR 16 was the repeal the 16th Amendment deal.

From House website: http://posey.house.gov/news/documentsingle.aspx?DocumentID=1...

You can be sure they will say, "Oh, repealing will take awhile, so let's just pass this little ole bill for now until all that messy stuff happens later."

Yeah, and I'd also like to buy some swamp land in Florida. I already have my Deed to the Brooklyn Bridge.

The current Congress will NEVER repeal the 16th Amendment. What they REALLY want is ... BOTH.

I am convinced that that is what Hermain Cain's run for president was all about: checking the way the wind blows on public opinion, so that they can start trying to shape public opinion.


I don't care what you call

I don't care what you call it! Income tax, consumption tax,fair tax, I don't want none of it man!

juan maldonado

I was going to be derisive, but...

Abolish IRS and let loose all their political prisoners. That would be good.

A consumption tax makes government the middleman in every transaction. Who will be licensed to collect the taxes?

Will this allow a more treacherous use of the Commerce Clause by bringing all commerce under Federal Jurisdiction.

I may hear it on the News. "Young boy arrested at airport for failing to pay his "Fair Tax". Guilty! cry the masses. Hoo Boy, it's easy to get a conviction.

This will be egregious if implemented on the Federal level.

States originally collected the taxes in gold and silver as established by statue. The Federal government could only accept gold and silver as proscribed by the Constitution.

The people's House was the House of Representatives. The State legislatures had to collect the taxes so they got to pick two Senators.

The people's House wrote the budget. If there needed to be a tax the State government, being greedy of their own need for tax monies informs their Senator, "Read our lips, No new taxes."

Popularly elected Senators are mostly worthless. Politician make promises, Senators took orders.

The selfish needs of individuals, the selfish needs of State legislatures were resolved between the Senate and the House.

Today, the two political Parties resolve these issues and budgets are rubber stamped. The people and the States have no say.

This is a land where money talks and Federal Reserve members make 6% profit tax free after expenses. Members just run huge expense accounts re-electing the "Players" for the national theater.

Free includes debt-free!

the banks are already collecting 3% of every purchase

because nearly all purchases are made with credit or debit cards

Fair tax but credit cards only. Is that the plan?


Free includes debt-free!

well that isn't the fair tax

however I have heard of a very small transaction tax and this would be easy to do on bank or just credit card transactions. I am sure teh banks would be happy to collect them (for a small fee!). But that plan was one to raise evn more revenue...and not get rid of the income tax.

Fairtax is better!

Get this passed NOW! Later we can worry about eliminating all taxes like Ron Paul mentions. I have many small businesses and none are that successful. I spend a good chunk of my time planning my life and spending around how it will affect my taxes. The IRS is a major anchor in my life. While I usually owe money at the end of the year, my forein born (non citizen) relatives are getting 3 to 4 thousand dollar refunds (for very little work). I am actually worried every year of an audit. I have tons of legitimate write offs, but worry the IRS won't believe them during an audit.

Although, I love my relatives and in a selfish way, I'm glad they get the money, the IRS has become a system of taking from hard workers and giving to the lazy (and non citizens).

Fairtax actually will make illegal aliens pay taxes!

Eliminate Wasted Record Keeping

Talk about tyranny.

If you lose your records, you will get an audit where they will make up fake numbers. You might have to pay enormous sums of taxes for income that never existed. This is your punishment for not keeping proper records.

The IRS has to go.

Fair Tax is the only politically viable solution available.

If we had approved the National Retail Sales Tax in 1978 when it was first introduced, the government budget would not be bloated today and Obama would not be President.

Gene Louis
Supporting a Needed Tool for Government Feedback:
A Citizen-Operated Legal System.


I keep a minimum of 5 years, because they can go back that far if they suspect fraud. I actually was audited once, but by the State income tax and it went back about 4 years.

I would still keep records with fairtax, but they sound a whole lot easier!



Free includes debt-free!

Just in the taxes they stole from me in the last few years

I could have bought a car flat out no loan. And there are millions of people like me who would do something similar. Imagine all the business and jobs that would create.

So sick of these people talking about how they should steal more money from us while they can't even balance a freakin check book.

reading this gets me heated.

23% kiss my @$$

The only way I would be OK with a consumption tax is if it was written in stone to be temporary and if it was much lower then 23%. But politicians cannot be trusted, we shouldn't be sending them ANY money in my opinion. Want to boost the economy, let us keep our damn money, and we will most likely spend it on stuff here in America.

"we shouldn't be sending them ANY money in my opinion"

One thing at a time. The amount of revenue that the government should be raising depends on the amount of spending they should be doing. That's one debate. Whatever the appropriate amount of revenue is, there's then a second debate about how (by what tax) that revenue should be raised. There's no reason to force these two separate issues together. We can improve the method of taxation now, and reduce the total level of taxation later - or vice versa. But the point is: exploit the opportunities which present themselves, don't refuse steps in the right direction just because they're not giant leaps. Or, in other words, don't let the perfect be the enemy of the good. If you think a sales tax, all else being equal, is preferable to income taxes, then you should support this bill, period. Everything else is beside the point right now.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

does this mean the guy down the street

who cleans carpets for a living would be required to add 30% (29.87% to be exact) to his bill. Will every small business operator have to become a federal tax collector?

this is a horrible idea that will punish folks who don't even have to pay tax today.

even small children will be subject to it when they buy candy - what an awful idea for everyone.

did you just

did you just make a "think of the children" argument?

"punish folks who don't even have to pay today."

1. everyone pays. ever heard of the inflation tax? didn't think so.

2. why aren't those people paying? if i pay, they need to pay.

3. a consumption tax already exists on candy fool.

4. moving from income tax to consumption tax takes a baby step into rewarding savers.

5. you need to be flogged.

no, work on that comprehension a little

I think all of us here are more than a little aware of the inflation tax.

We also know that income taxes were established to pay the fed interest on an unconstitutional monetary system.

From the disrespectful tone of your comment, it appears you might not be aware that these 'flat' tax ideas are a way for the Fed to stick it's nose even further into every transaction and collect even more interest.

Please think it through a before flying off.

You make good points, but

You make good points, but need to be so snarky?

I'd support this...

...because it would be a definite improvement over the current system.

For the critics: remember, this is about how to raise a given amount of revenue, not what amount of revenue should be raised. Obviously the federal government should be raising a lot less revenue, but that's beside the point in this discussion.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

Go for it!

And we can all enjoy all of the newly created black (that is, free, of course) markets that will be created to avoid paying the consumption tax!


Anything but cut spending.

Start with closing down a department (e.g. Education, Energy, Commerce) and then waste our time taking about a better tax scheme.

I am all for eliminating the income tax and replacing it with nothing.

Longtime Internet Poster

Abolishing the IRS

would save this country more in WASTED revenue than any other possible offer or thought that has been offered in this century (excepting Ron Paul's ideas of course).

While I am not fond of taxes in any form, I like this idea in the respect of making government smaller, much smaller... I am 'ok' that it is on NEW product sales as it keep reselling used items out of the tax option.

The part I really DON'T like is the tax on services... So I come clean your toilet for $10 and that requires a UStax of $2.30? Nah, I don't like that part (cleaning your toilet for $10 or collecting tax for it of $2.30)

It would make alot more ammo available on the market as well since all the armed IRS thugs would be out of a job...

Ammunition -- 9mm - 40s&w - 45acp - .223/5.56x45 -- www.ammopit.com
Bulk Components starting this month also with 223 bullets!

Does this tell anyone

that maybe....just maybe, the corrupt, despicable IRS collections actions is miserably failing because many are now being educated and finding that they do not earn Federal Income as they are decieved into believing!

What a farse and a scam of mixing words in a code book that mystifies most, but those who dare to go there and anyalize and follow through with truth and facts and questions that the IRS will never ever answer!

The fedral income tax is just that... A tax on federal income!

And were they ever given the title "Service"?
Who did they EVER serve?
Surely not the people!


" In Thee O Lord do I put my trust " ~ Psalm 31:1~

I liken this to

Romney saying "Repeal and replace"...

for what it's worth, I just want to return to the pre-1913 tax policy!

When Fascism goes to sleep, it checks under the bed for Ron Paul!

Anything that abolishes the IRS is GOOD

Consider the rest of it interim....

Only slightly better

than the current situation...


i used to be against this

but if it can be done in such a fashion that abolishes the irs before any new system is introduced, i could get behind it as a baby step.

"The two weakest arguments for any issue on the House floor are moral and constitutional"
Ron Paul