A bill that would try to abolish the Internal Revenue Service (IRS) and eliminate federal income tax was reintroduced on Tuesday by Georgia Republican Rep. Buddy Carter.

A vote on the bill, labeled the Fair Tax Act, was part of a deal that was negotiated between the House Freedom Caucus and Speaker Kevin McCarthy during his quest for the speakership.

The Act “will eliminate the need for the IRS by simplifying our tax code with provisions that work for the American people,” Carter said on Twitter. 

The current federal income tax scheme would be replaced with a single nationwide consumption tax. The Office of Management and Budget criticized the bill and said it would only benefit certain taxpayers.

“With their first economic legislation of the new Congress, House Republicans are making clear that their top economic priority is to allow the rich and multi-billion dollar corporations to skip out on their taxes, while making life harder for ordinary, middle-class families that pay the taxes they owe,” the Office of Management and Budget said in a statement.

The vote comes after House Republicans passed a bill Monday evening that would prevent plans to fund 87,000 new IRS agents, originally included in the Inflation Reduction Act that Democrats passed last year.

A date has not been set for the vote on the Fair Tax Act. However, both bills are unlikely to pass in the Democratic-controlled Senate. 

Share:
More In Politics
Trump suggests canceling Xi meeting and threatens more tariffs after China restricts key exports
President Donald Trump says “there seems to be no reason” to meet with Chinese leader Xi Jinping as part of an upcoming trip to South Korea after China restricted exports of rare earths needed for American industry. The Republican president suggested Friday he was looking at a “massive increase” of import taxes on Chinese products in response to Xi’s moves. Trump says one of the policies the U.S. is calculating is "a massive increase of Tariffs on Chinese products coming into the United States." A monthslong calm on Wall Street was shattered, with U.S. stocks falling on the news. The Chinese Embassy in Washington hasn't responded to an Associated Press request for comment.
Load More