The FairTax bill, also known as HR 25, will soon be voted on by the US House Committee on Ways and Means.
This will be the first time ever the FairTax bill has come to a vote before a congressional committee.
According to Cindy Canevaro, Executive Director of Americans for Fair Taxation, the FairTax Plan is the largest grassroots tax reform initiative in the US.
In an email to supporters, Canevaro wrote “You and thousands and thousands of FairTax supporters like you have toiled in the trenches educating anyone and everyone you meet about the FairTax and why it is the best tax plan for jobs and economic growth.”
She went on to say that she had received an email from Congressman Rob Woodall (GA-7) dated yesterday.
The full letter from Congressman Woodall can be viewed here. In it he stated:
“As you know, all tax reform bills in the House of Representatives must go through the Ways and Means Committee. That’s why I am so pleased to share with you that I understand the FairTax will receive a vote – for the first time in history –when it considers a fundamental tax reform bill this Congress! I know the pace of the legislative process can be frustrating at times, but be encouraged by this development because it is no small feat.”
Canevaro said “We anticipate the tax reform debate and vote sometime within the next 45 days. We don’t know, however, what impact the current budget battle/potential government shut down will have on the Committee’s work and schedule.”
The FairTax plan involves replacing the current income tax system with a national sales tax. It calls for the elimination of the IRS.
While sales of all items and services at the retail level would be subject to the sales tax, consumers would receive a prebate designed to cover the cost of the tax on necessities.
Supporters of the FairTax say the plan will improve privacy (no reporting of income, deductions, interest, health costs, etc.), allow consumers to take charge of how much they pay in taxes (employees will receive their entire wages and control how much they pay in taxes by how much they spend buying retail items), encourage savings and investments (money saved and/or invested is not taxed), eliminate the influence of lobbyists on the tax code, and drastically reduce the cost and stress of complying with the current, complicated, tax code.
What are your thoughts on the FairTax bill making its way through the House and Means Committee?
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