BTC

$96186.472

-1.39%

ETH

$2663.253

-1.11%

XRP

$2.734

-1.68%

BNB

$670.996

1.95%

News

Fair Tax Act Promoted to Repeal Income and Gift Taxes

2 mins mins

Key Points:

  • Buddy Carter’s Fair Tax Act seeks to abolish the IRS and replace federal income and payroll taxes with a 23% national consumption tax.
  • The bill includes measures requiring unauthorized immigrants to pay taxes but excludes them from certain allowances provided to legal residents.
Rep. Buddy Carter has introduced the Fair Tax Act, a bold proposal to replace the current U.S. tax system with a national consumption tax.
Fair Tax Act Promoted to Repeal Income and Gift Taxes

Read more: US Senate Banking Committee Is Promoting First Crypto Subcommittee 

Fair Tax Act Proposes National Consumption Tax to Replace IRS

Filed as H.R. 25, the measure would jettison the federal tax code, scrap the IRS and impose a 23% consumption tax on new goods and services.

Personal and corporate income taxes, payroll taxes, estate taxes, and gift taxes would be abolished under the proposal. In the move to a consumption-based system, Americans would take their whole paycheck home, with no federal withholding, restoring personal economic freedom. Supporters say it would simplify tax administration and rein in government overreach.

The Fair Tax Act was first introduced to Congress in 1999 by former Georgia Congressman John Linder. It has been supported by Republican lawmakers like Andrew Clyde, John Carter, Scott Perry, and Eric Burlison. The bill also has sections that would require unauthorized immigrants to pay taxes without granting them the consumption allowance provided for legal U.S. residents.

IRS Digital Asset Rules Spark Pushback from Blockchain Advocates

In September, the IRS issued a rule that makes digital-asset brokers report customers’ transactions starting from 2027. Under the regulations, brokers need to report the gross proceeds along with taxpayer-identifying information. For such regulations, any platforms that use smart contracts through which transactions occur would be defined as brokers. By its count, some 650 to 875 DeFi protocols are likely broker entities under those regulations.

That new categorization has blockchain advocates up in arms. The Blockchain Association, DeFi Education Fund, and Texas Blockchain Council filed a lawsuit against the IRS, challenging the reporting requirements as too burdensome.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
4.7/5 - (444 votes)
Follow us on Google News

Buddy Carter

Fair Tax Act

H.R. 25

IRS

Avatar of Harold

Harold

13 January 2025, 03:56:42 GMT +0000

With a passion for untangling the complexities of the financial world, I’ve spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. “The financial markets are a fascinating puzzle,” I often say, “and I love helping people make sense of them.” That’s what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Other Posts: