InsiderAdvantage: Carter Introduces Fair Tax Act as Republicans Work to Stop Funding for New IRS Agents

Cindy Morley

Thursday, January 12th, 2023

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House Republicans have taken a hardline stance against the Biden Administration’s efforts to expand the federal government – especially the funding for 87,000 new IRS positions. This week, Rep. Buddy Carter (R-GA) introduced legislation that gets rid of the national personal and corporate income taxes and abolishes the IRS, killing the plans to hire the new agents.

House Resolution 25, a re-introduction of the Fair Tax Act, would replace the current tax code with a national consumption tax known as the Fair Tax and gets rid of the death, gift and payroll taxes.

“Instead of adding 87,000 new agents to weaponize the IRS against small business owners and middle America, this bill will eliminate the need for the department entirely by simplifying the tax code with provisions that work for the American people and encourage growth and innovation,” Carter said.

Joining Carter as original cosponsors are his Georgia peers Reps. Andrew Clyde (R-GA) and Barry Loudermilk (R-GA). Others supporting the legislation are Jeff Duncan (R-SC), Kat Cammack (R-FL), Scott Perry (R-PA), Bob Good (R-VA), Thomas Massie (R-KY), Ralph Norman (R-SC), Bill Posey (R-FL), Gary Palmer (R-AL), and Jim Banks (R-IN).  

First introduced into the U.S. Congress in 1999 by former Georgia Congressman John Linder, the Fair Tax is the leading tax reform movement in the country. The Fair Tax would repeal the current tax code and replace it with a single national consumption tax that is, “pro-growth and allows Americans to keep every cent of their hard-earned money,” Carter said.

The announcement of this bill comes on the heels of a vote by the House Monday which saw Republicans pass a bill to curb $80 billion earmarked for the IRS over the coming decade. Most believe the legislation will assuredly fail in the Democratic-controlled Senate.

The vote on the bill was made as part of the deal between House Speaker Kevin McCarthy (R-CA) and members of the House Freedom Caucus and was pushed forward in his quest for the Speaker’s position last week.

Rep. Rick Allen (R-GA) was a strong supporter of H.R. 23, the Family and Small Business Taxpayer Protection Act., that was voted on Monday night. He has been very outspoken on his opposition to the hiring of the additional 87,000 new IRS employees to conduct tax audits.  

“America needs more border patrol agents and more police officers. We do not need more IRS auditors targeting everyday Americans and their family-owned small businesses,” said Allen, in a statement released Tuesday night.  “It is unthinkable that, during a time of record-high inflation and economic hardship, Democrats thought it appropriate to unleash an army of additional IRS agents to go after hardworking taxpayers, many of whom make less than $200,000 a year. Congress should work for the people, not against them. I was proud to cast my vote to eliminate this harmful provision and stand up for the American people.”