The Fair Tax Act of 2023 was recently introduced to Congress.  If passed, the Act would allow a federal consumption tax of 23% on all goods and services that would replace most other federal taxes nationwide.

If the Fair Tax Act becomes a law, it would effectively abolish federal corporate taxes, payroll taxes (which include self-employment tax), estate taxes, death taxes, and other federal taxes, such as capital gains.  The legislation also looks to abolish the IRS since the Act aims for individual states to impose the levy beginning on January 1, 2025.

Multiple provisions are included in the bill.  One such provision, the “prebate” provision, would send every household in America a check worth 23% of the poverty line for a household their size to offset some of the burden.  Another provision addresses the collection of Social Security and Medicare funding through the new tax.

Although this bill is in its earliest stage, there are many intricacies that are already stemming marked discussion amongst Parties.  What are your thoughts about this one size fits all tax proposal and the ever-changing sales tax landscape?