On the day of the federal income tax filing deadline for 2012, Congressman Roscoe Bartlett participated in a news conference with Congressman Rob Woodall, and other members among the 66 cosponsors of the Fair Tax reform bill, H.R. 25, in front of the Capitol in Washington, DC. The members of Congress were joined by the President of the National Small Business Association, Todd McCracken, as well as the President of the National Taxpayers Union, Duane Parde.
Congressman Bartlett said at the news conference, "With this Fair Tax reform, we will have lower rates and collect more tax revenue by eliminating all of the complexity of our current tax code. We need this fundamental reform that will protect the poor and tax people for what they spend instead of what they save and invest. The Fair Tax will unshackle our entrepreneurs and small business owners and strengthen our economy by spurring the production of more goods and services."
Photo caption from the news conference:
Congressman Roscoe Bartlett urged support for the Fair Tax reform bill, H.R. 25, at a news conference at the Capitol on the 2012 federal tax filing deadline, April 17. To the left behind Congressman Bartlett is Cynthia Canevaro, Campaign Manager for fairtax.org.
Below is a summary of the bill prepared by the Congressional Research Service (CRS):
The Fair Tax Act of 2011, H.R. 25
Repeals the income tax, employment tax, and estate and gift tax. Redesignates the Internal Revenue Code of 1986 as the Internal Revenue Code of 2011.
Imposes a national sales tax on the use or consumption in the United States of taxable property or services. Sets the sales tax rate at 23% in 2013, with adjustments to the rate in subsequent years. Allows exemptions from the tax for property or services purchased for business, export, or investment purposes, and for state government functions.
Sets forth rules relating to: (1) the collection and remittance of the sales tax, and (2) credits and refunds. Allows a monthly sales tax rebate for families meeting certain size and income requirements.
Grants states the primary authority for the collection of sales tax revenues and the remittance of such revenues to the Treasury. Sets forth administrative provisions relating to: (1) the filing of monthly reports and payments of tax, (2) accounting methods, (3) registration of sellers of goods and services responsible for reporting sales, (4) penalties for noncompliance, and (5) collections, appeals, and taxpayer rights.
Directs the Secretary of the Treasury to allocate sales tax revenues among: (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund.
Prohibits the funding of the Internal Revenue Service (IRS) after FY2015. Establishes in the Department of the Treasury: (1) an Excise Tax Bureau to administer excise taxes not administered by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and (2) a Sales Tax Bureau to administer the national sales tax.
Terminates the sales tax imposed by this Act if the Sixteenth Amendment to the U.S. Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this Act.