America has a progressive income tax system in which those with higher incomes are taxed more than those whose incomes are lower. This system uses margins, or tax brackets, to determine the percentage of income a person or company must pay. Some claim it is the fairest system because it taxes people on their ability to pay, while others wish to replace our progressive tax system with a flat or fair tax. A Flat Tax system taxes all incomes at the same percentage rate, while a Fair Tax system replaces the income tax with a national sales tax. Opponents warn that tax rates for both of these tax systems could be raised very easily.

A Fair Tax system eliminates all individual and corporate federal income taxes and abolishes the IRS. It creates a national sales tax which would generate enough revenue to fund the federal government. It has been suggested the sales tax rate of a Fair Tax would be about 23% and would be charged on all consumer products - with some protection provided for the poor. Opponents of a Fair Tax system say that a 23% tax on everything purchased would create a huge black market for untaxed products and encourage widespread bartering. Such tax evasion would likely force an increase in the sales tax rate.

Pending Legislation: H.R.25 - FairTax Act of 2025
Sponsor: Rep. Earl Carter (GA)
Status: House Committee on Ways and Means
Chair: Rep. Jason Smith (MO)

• I oppose reforming current fair tax policy and wish to donate resources to the campaign committee of Speaker Mike Johnson (LA).
• I support abolishing the Internal Revenue Service (IRS) and eliminating all federal income, payroll, estate, and gift taxes and be replaced with a single national retail sales tax by:
  
  1.) Imposing a national sales tax on the use or consumption of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23%, with adjustments to the rate in subsequent years (some analysts believe that a significantly higher rate would be necessary to replace lost revenue).
  
  2.) Eliminating the Internal Revenue Service. The national sales tax would instead be administered by the states, which would remit the collections to the U.S. Treasury.
  
  3.) Including a monthly rebate, or "prebate," to every family that is a lawful U.S. resident. This allowance is designed to offset the sales tax on necessities up to the federal poverty level.
  
  4.) Stipulating that the national sales tax would be terminated if the 16th Amendment, which authorizes a federal income tax, is not repealed within seven years of enactment.
  
  And wish to donate resources to the campaign committee of Rep. Jason Smith (MO) and/or to an advocate group currently working with this issue.