Bill 119 HR 25, also known as the FairTax Act, aims to overhaul the current tax system in the United States. The bill proposes to repeal the income tax and other taxes, including payroll taxes, estate taxes, and gift taxes. In addition, the bill seeks to abolish the Internal Revenue Service (IRS) and replace it with a national sales tax.
Under the FairTax Act, a national sales tax would be implemented and administered primarily by the states. This tax would be levied on the purchase of goods and services, with the goal of promoting freedom, fairness, and economic opportunity. Proponents of the bill argue that a national sales tax would simplify the tax system, eliminate loopholes, and encourage economic growth.
Critics of the FairTax Act raise concerns about the potential impact on low-income individuals and families, who may bear a disproportionate burden of the sales tax. They also question the feasibility of implementing such a drastic change to the tax system.
Overall, Bill 119 HR 25 represents a significant proposal to reform the tax system in the United States by repealing the income tax, abolishing the IRS, and enacting a national sales tax. The bill has sparked debate among lawmakers and taxpayers alike, as they consider the potential benefits and drawbacks of such a sweeping change.