A Republican-sponsored bill, the Fair Tax Act, was recently introduced in the U.S. House of Representatives. It calls for eliminating most federal taxes (including individual and corporate income, capital gains, payroll, and estate taxes) as well as getting rid of the IRS. The taxes would be replaced with a 23% federal sales tax on goods and services, which couldn’t be offset by deductions or tax credits. In a report, the Congressional Research Service (CRS) examined the benefits and pitfalls of such a consumption-based sales tax system. Proponents tout its simplicity, but critics say it would place a greater tax burden on certain people. Read the CRS report: https://bit.ly/40YivJ5
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