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House GOP seeks to abolish IRS, replace income tax with consumption tax

Fifty-four House Republicans on Thursday reintroduced legislation that would terminate the IRS and replace the system of income taxes on people and corporations with a consumption tax.

The FairTax Act, from Rep. Rob Woodall (R-Ga.), would abolish the 16th Amendment, which was ratified 100 years ago this February. That amendment gives Congress the power to impose income taxes without having to spend the revenues evenly among the states.

Woodall's bill, H.R. 25, would replace the current tax system with a 23 percent consumption tax on all new goods and services. He said Thursday that this change would eliminate the need for a complicated tax code, and would be the kind of tax reform that helps reinvigorate the economy.

Tags: GOP, House, IRS, abolish, consumption, income, replace, seeks, tax, to, More…with

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Permalink Reply by Michael Rivero on January 7, 2013 at 10:32am

The 16th Amendment was not in fact ratified.

And even if it had been, the United States Supreme Court ruled in Stanton Vs. Baltic Mining that the 16th Amendment did not confer any new taxing authority in Congress, which means if the Constitutional prohibition against direct non-apportioned taxes was in effect before the proposed 16tth Amendment, it was still in effect afterwards as well. Remember that whopper the US Government told you about Saddam's nuclear weapons? Well, that was a tiny white lie compared to the prevarication regarding the ratification of the 16th Amendment.

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Permalink Reply by Lawrence Edward Calcutt on January 7, 2013 at 4:24pm

Michael. re you last point, "that was a tiny white lie compared to". The America people hav been feed many since 1776, or did they start in 1777,?

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Permalink Reply by 3dstkr4yzrciy on January 7, 2013 at 4:24pm

Who would be in charge of the new tax system if they abolish the IRS and wouldnt that upset their buddies at the Fed?

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Permalink Reply by suzie on January 7, 2013 at 7:36pm

you would need a constitutional amendment .. when they say they want to change the tax code i cringe because if we only followed the law americans would realize there is no income tax for 99% of us .. there is no law

i agree with Mike R

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