https://www.foxnews.com/politics/house-republicans-vote-bill-abolishing-irs-eliminating-income-tax
Excerpt:
[Republicans in the House of Representatives will vote on a bill that would abolish the Internal Revenue Service (IRS), eliminate the national income tax and replace it with a national consumption tax.
Fox News Digital has learned that the House will be voting on Georgia Republican Rep. Buddy Carter's reintroduced Fair Tax Act that aims to reel in the IRS and remove the national income tax, as well as other taxes, and replace them with a single consumption tax.
The vote on the bill was made as part of the deal between House Speaker Kevin McCarthy, R-Calif., and members of the House Freedom Caucus and was pushed forward in his quest for the gavel last week.]
Here's the bill itself: https://www.congress.gov/bill/117th-congress/house-bill/25/text?r=96&s=1
[starting to read it for an impression of the consumption tax, but stopped myself to just share the link first.]
[There's really too much to summarize, but a few things stand out, the first of which being a LOT of mention of 'common law', rest as follows]
(a) In General.—There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.
“(b) Rate.—
“(1) FOR 2023.—In the calendar year 2023, the rate of tax is 23 percent of the gross payments for the taxable property or service.
“(4) GENERAL REVENUE RATE.—The general revenue rate shall be 14.91 percent.
...and...
USED PROPERTY.—The term ‘used property’ means—
“(A) property on which the tax imposed by section 101 has been collected and for which no credit has been allowed under section 202, 203, or 205, or
“(B) property that was held other than for a business purpose (as defined in section 102(b)) on December 31, 2022.
[maybe indicating that real estate business holdings will be taxed, but not households? idk]
"(b) PURPOSES - “(2) To tax all consumption of goods and services in the United States once, without exception, but only once.
[There's a carrot here for sure...not entirely convinced we'd get to eat it, could a stick somewhere I'm not seeing.]
How do you get taxed only once?
Taxed at raw.
Taxed at manufacturer.
Taxed at distributer/wholesale.
Taxed at the register.
No income tax?
Flat tax, <3%.
Never will it rise above 3%.
Current GDP is $23.32 trillion.
3% is $69,960,000,000
Figure it out.
China spends $229 billion a year on defense alone.
That means the US needs to INVEST that much into the Average American for Defense.
Average American Bonds
Like Birth Certificates, but not slavery.
(bit confused, but I'm likely not the best person to answer anyways.) That (b) PURPOSES - (2) section talking about taxed only once, must reference just final sales? [I guess I take that to mean re-sale wouldn't be taxable...like they wouldn't be going after Garage Sales anymore.] I would imagine you're correct that it could be compounding as raw materials move to become parts and then onto a product.
It definitely would be nice if our media wasn't corrupt, this could be brought up and discussed in a rational way to work out the details and how the rollout would work in different areas of the economy. [I can't argue on the military budget, just have to think it probably wouldn't be so bad without waging undeclared war all the time.]
Consumption tax like a sale tax?
That's my impression (honestly unsure why the different word choice).