WASHINGTON, D.C. – U.S. Senators Jerry Moran (R-Kan.) and David Perdue (R-Ga.) today introduced legislation to overhaul and simplify the American tax system. The bill, based upon a proposed tax system known as the "FairTax", would replace our complicated and costly tax system with a flat national consumption tax and eventually close the Internal Revenue Service.
"Overhauling the American tax system is not an easy undertaking, but the economic need for a leaner and fairer tax code has never been greater," Sen. Moran said. "Reducing costly inefficiencies and the burden of filing taxes should be a priority in this Congress. The FairTax would place all taxpayers on equal footing, protect Americans from government intrusion by the IRS, boost business growth, and incentivize savings and investment – all while collecting revenue at levels similar to those of our current mess of a tax code."
"In order for America’s economy to thrive in today’s international economy, we must remain competitive,” said Sen. Perdue. “Instituting the FairTax will level the playing field and make America the best place in the world to do business. The FairTax is smart policy that will help protect hardworking Georgians and all American taxpayers."
The FairTax would repeal all federal personal income taxes, corporate income taxes, payroll taxes, self-employment taxes, capital gains taxes and gift and estate taxes, and replace those with a revenue-neutral, personal consumption tax on all retail sales of new goods and services. U.S. Representative Rob Woodall (R-Ga.) has introduced the companion bill, H.R. 25, in the House of Representatives.
"The FairTax Act deserves to be heard in a committee setting, debated, and given an up or down vote," Sen. Moran continued. "This tax reform proposal would have a positive impact on millions of taxpayers, allowing Americans to once again be in charge of their lives and money."
"Americans For Fair Taxation® is thrilled that Senators Jerry Moran and David Perdue are leading the fight for real tax reform," said Steve Hayes, Chairman and President, Americans For Fair Taxation. "The Senators' sponsorship of the FairTax® serves notice that it is time for Congress to stand with the American people and enact the only tax replacement plan that will generate jobs, stimulate the economy and free the American people from the shackles of a punitive and out-of-control IRS."
Click below to read the legislative text of the FairTax Act.
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- FairTax Bill Text - (187.6 KBs)