Several Republicans in the U.S. House of Representatives have introduced a bill that would significantly reduce funding for the Internal Revenue Service (IRS). This comes after the newly elected Speaker, Kevin McCarthy, announced his intention to challenge the funding allocated to the U.S. tax agency in the previous year.
After the newly elected Speaker of the United States House of Representatives, Kevin McCarthy, announced his intention to repeal the tens of billions of dollars in funding that was approved for the Internal Revenue Service (IRS) last year, House Republicans have proposed a bill that aims to eliminate the federal income tax, and replace it with a “Fair Tax” and a national consumption tax that would be collected by each state.
The bill is known as the “Family and Small Business Taxpayer Protection Act” and it calls for a “rescission of certain funds made available to the IRS.”
The H.R. 25 bill, also referred to as the Fair Tax Act, was co-sponsored by Representative Earl L. “Buddy” Carter (R-GA). Carter stated in a statement, “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. Armed, unelected bureaucrats should not have more power over your paycheck than you do.”
If the president were presented with H.R. 25 – or any other bill that enables the wealthiest Americans and largest corporations to cheat on their taxes, while honest and hard-working Americans are left to pay the tab – he would veto it.
The IRS audits the poor 5 times the rate of the rich.
87,000 new IRS agents aren’t for billionaires.
They are for $600 Venmo transactions.
— Julio Gonzalez – juliogonzalez.com (@TaxReformExpert) January 10, 2023
Advocating for Abolition of the IRS: A Repeated Idea by Various Proponents
The bill is not the first time Republican officials have discussed abolishing the IRS. On Oct. 30, 2022, the U.S. senator from Texas, Ted Cruz (R-TX), tweeted “Abolish the IRS!” and repeated the sentiment earlier this week.
Abolish the IRS!
— Senator Ted Cruz (@SenTedCruz) October 30, 2022
Former Representative Ron Paul, R-Texas, has repeatedly spoken out in favor of shutting down the IRS. He holds the belief that the IRS is an invasion of privacy and that it violates the rights of individuals and businesses by requiring them to disclose personal financial information. As an alternative, he has proposed a flat tax or a national sales tax system to replace the current income tax system.
The late American economist, historian, and political theorist Murray Rothbard also believed that the IRS represented a violation of property rights and an illegitimate use of government power. Rothbard wrote extensively on the topic, and in his view, the IRS as an enforcement arm of the state was a tool of coercion and oppression and therefore should be abolished. Meanwhile, regarding the Fair Tax Act, Rep. Bob Good (R-VA) stated that he supports it “because it simplifies our tax code.”
“This transforms the U.S. tax code from a mandatory, progressive, and convoluted system to a fully transparent and unbiased system which does away with the IRS as we know it,” the Virginia representative added.
Joy Rice is a computer science graduate and crypto writer with a strong understanding of blockchain technology. She writes about the latest developments in the crypto industry, and is passionate about educating and informing readers about the potential uses of blockchain.