WASHINGTON, DC (WTVM) – A life without the Internal Revenue Service? With new legislation introduced by the two Georgia senators in Washington, DC, it could be more than a dream taxpayers have during this time of the year.
United States Senators Johnny Isakson and David Perdue, R-GA, introduced and co-sponsored a bill entitled the Fair Tax Act of 2015.
"In order for America's economy to thrive in today's international economy, we must remain competitive. Instituting the FairTax will level the playing field and make America the best place in the world to do business. The FairTax is smart policy that will help protect hardworking Georgians and all American taxpayers," Perdue said in a statement.
The freshman senator is a member of the Senate Budget Committee. Isakson is a member of the Senate Finance Committee.
Simply put, the bill calls to "promote freedom, fairness and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax."
The bill proposed the abolition of the following taxes:
- Personal income taxes
- Corporate income taxes
- Payroll taxes
- Self-employment taxes
- Capital gains taxes
- Gift and estate taxes
These taxes will be replaced with what Perdue and Isakson call "a revenue-neutral, personal consumption tax" on every retail purchase.
"Our tax code is a burden on families and a drain on small businesses," Isakson said in a statement. "Our current tax code punishes hard work and productivity, and the recent scandals surrounding the Internal Revenue Service's politically motivated targeting of grassroots citizen groups is even more proof that no federal government agency should be trusted with this much power. Moving to the kind of system outlined in the Fair Tax of 2015 is a no-brainer. It's time that we simplify our tax code, abolish the IRS, and create a more simple way to pay your fair share."
Currently, 43 states and Washington, DC have a statewide sales and use taxes currently. The seven states that don't have an income tax are: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Tennessee and New Hampshire don't tax wage income. The state of Alabama is also one of most regressive tax states in the country.
To read the full bill, click here.