Last night, U.S. Sen. Saxby Chambliss, R-Ga., introduced S.122, The FairTax Act, which would implement a simpler, less-cumbersome tax code. Chambliss has introduced the FairTax legislation every year he has been in the Senate.
"The current tax code has become too burdensome and complex, and is filled with provisions that only benefit a few Americans at the expense of everyone else. That's simply not right," said Chambliss. "The FairTax Act would create a fairer, simpler tax code that allows every American the freedom to determine his or her own priorities and opportunities."
The FairTax would shift the federal government's method of revenue collection from income to personal consumption. It would abolish the Internal Revenue Service, and repeal all federal personal income taxes, corporate income taxes, payroll taxes, self-employment taxes, capital gains taxes and gift and estate taxes. It would replace those with a revenue-neutral, personal consumption tax on all retail sales of new goods and services.
Original co-sponsors of the bill are U.S. Sens. Richard Burr, R-N.C., Jim Inhofe, R-Okla., Tom Coburn, R-Okla., John Cornyn, R-Tex., Jerry Moran, R-Kan., and Ted Cruz, R-Tex.