National Sales Tax Plan Would Eliminate IRS, But Still Be Expensive
View Source | January 26, 2023 6:45 am
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- A plan to overhaul the nation’s tax system is unlikely to advance this year, but it could help define the contours of the tax debate in the coming years.
- It would eliminate funding for Internal Revenue Service operations after fiscal year 2027. And it would terminate the national sales tax if the Sixteenth Amendment to the Constitution, which authorizes an income tax, is not repealed within seven years of enactment.
- The legislation would eliminate the national income tax and replace it with a 23% national consumption tax. It would eliminate existing income taxes, payroll taxes and estate and gift taxes. The national sales tax rate could be adjusted after 2025. Consumption business, export and investment would be exempt. U.S. residents would get a monthly sales tax rebate based on family size and federal poverty guidelines.
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