This is not from X as usual, but from a lawn forum of all places.
So yesterday I got a quick 9 holes in on our 66 degree January day in KC with a couple friends and afterwards I was informed that upcoming this year there will be an announcement that the IRS is being abolished and that Jan 1st of 2027 it will cease to exist.
Obviously, I was little taken aback by this, so I started to investigate it.
There was a bill introduced called The Fair Tax Act (H.R. 25) by a guy from Georgia that basically dismantles the IRS and repeals income taxes, payroll taxes, and estate and gift taxes. This is also very similar to bills that have been introduced on a yearly basis since 1999.
Now my first thought is great. Its more money in our pockets which clearly helps everyone.
My second thought is there is no way the government is going to give up the almost 5 trillion in taxes that it collected in 2024 alone.
So what gives?
As I started to read through it I found the catch.
If this passes it will also include a broad based national sales tax on good and services of 23% (which some analysts have said is realistically a 30% traditional sales tax) starting in 2027.
Theres a lot in here. Of course there are "allowances" stuffed into this. A lot of "rebates" put in. Basically, a lot of legal jargon that I don't have the time, patience or frankly the intelligence to read through.
Text - H.R.25 - 119th Congress (2025-2026): FairTax Act of 2025 | Congress.gov | Library of Congress
Has anyone read up and this and do you have any thoughts? I dont care who's in office. I dont see the government giving up this money. At the end of the day (R) or (D) will not keep their hands out of our pockets.
Fair Tax was designed to only tax what you spend above the minimum amount a person needs to spend to live. The idea being that some fresh out of high school kid didn't pay net taxes on surviving. This was to be done via a rebate given to every citizen for the same amount. But if someone went and bought a yacht, well, that's be paying a hefty sales tax on that. Simultaneously, the income tax was to be repealed with a constitutional amendment. There's more details that can explain the premise but that's the jist. I prefer the tariff idea over Fair Tax, personally, but I don't think I'd mind the Fair Tax if implemented as intended.