[Congressional Record Volume 169, Number 64 (Tuesday, April 18, 2023)]
[House]
[Pages H1790-H1795]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                REVENUE NEUTRAL PERSONAL CONSUMPTION TAX

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 9, 2023, the gentleman from Georgia (Mr. Carter) is recognized 
for 60 minutes as the designee of the majority leader.


                             General Leave

  Mr. CARTER of Georgia. Mr. Speaker, I ask unanimous consent that all 
Members have 5 legislative days to revise and extend their remarks and 
to submit extraneous material into the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Georgia?
  There was no objection.
  Mr. CARTER of Georgia. Mr. Speaker, today could be the last tax day 
our country ever has. Let that sink in. Today could be the last tax day 
our country ever has.

[[Page H1791]]

  Monday, April 15, 2024, could be just another spring day if Congress 
acts now and passes the only tax reform proposal to ever make it to The 
New York Times best seller list, the FairTax Act.
  H.R. 25, the FairTax Act is a simple, fair, and preferred alternative 
to our current tax system which puts bureaucrats before the basic needs 
of hardworking Americans.
  The bill would eliminate, as in do away with, the Federal income, the 
Federal payroll, the estate, and gift taxes, replacing them with a 
revenue neutral national 23 percent consumption tax.
  Mr. Speaker, nobody likes taxes, but given the choice between a 
payroll tax, an income tax, an estate tax, a gift tax, or a consumption 
tax, people would prefer a consumption tax because they are in control 
then.
  It would also eliminate the need for the IRS. It would eliminate tax 
day. No more tax day.
  How many people out there right now in this country are sweating as a 
result of today being tax day, or just sitting at home thinking, oh, if 
I can just get through this day?
  It would allow you to take home 100 percent of your paycheck so that 
you could control where your hard-earned dollars go. The best part 
about this is you don't need a law degree or a CPA license to 
understand it. It is simple. It is fair. It is preferred.
  For every dollar you pay for a new good or service, 23 cents will go 
to the Federal Government and 77 cents will go to the business. It is 
that simple. I agree, 23 percent is too high, but it is much better 
than what you are paying now.
  Have you ever looked at your paycheck? Have you ever looked at how 
much you get paid and how much you get to take home? It is ridiculous.
  No more, no less, no legal or financial expertise would be required.
  As I said, a 23 percent consumption tax is a lot. No one likes paying 
taxes, me included. I don't like paying taxes. I understand it and I am 
certainly willing to do my part, but I would surely prefer to have 
control over it instead of some unelected bureaucrat in Washington, 
D.C., as it is now, having control over it.
  What many consumers fail to realize and what Washington Democrats 
conveniently ignore is that today's sticker prices are already inflated 
to cover corporations' tax burdens.
  Every tax imposed on businesses, whether it is corporate, FICA, or 
other taxes is passed down to the consumer. You are already paying 
taxes every time you purchase a good or service. Under the FairTax Act 
you are only paying yours, not anyone else's. That is right. On the 
FairTax Act you will only be paying for what you consume. That is what 
a consumption tax does.
  Mr. Speaker, I am going to pause right now and then I will come back 
and finish what I have to say about this.
  Mr. Speaker, I yield to the gentleman from Arizona (Mr. Biggs), my 
friend who wants to speak on this FairTax Act.
  Mr. BIGGS. Mr. Speaker, I thank the gentleman from Georgia (Mr. 
Carter) for yielding. I appreciate his leadership on this issue.
  I was thinking as you were talking about the first job I ever had. I 
was making--this is really going to date me--I was making $2.50 an 
hour. I thought, holy mackerel, that is $100. I was working 40 hours 
and I was going to bring home $100. No, it was $75. That was a million 
years ago. I would bring home less today because everything else has 
gone up.
  I will just tell you something about that. I have watched that same 
thing happen to each one of my children. We live in this world where 
the Federal Government kind of clamps down on you. I appreciate this so 
much.
  The FairTax Act would repeal all Federal taxes, corporate taxes, 
individual income taxes, payroll taxes, self-employment taxes, capital 
gains taxes, death taxes, and gift taxes and replace them with a 
revenue neutral consumption tax.
  Do you know what is so nice about a consumption tax?
  You choose whether you are going to pay it. You choose whether you 
are going to pay it because it is how you consume. We pay too much 
already in Federal taxes, and under this administration we are paying 
silent taxes we never voted for.
  Since this administration took over, Americans are paying nearly 15 
percent more for goods and services due to the inflation tax.
  I have introduced legislation, and I know others have as well, to 
repeal the 16th Amendment to permanently abolish the Federal income 
tax. This is a fantastic bill that Mr. Carter has.
  I don't need to remind you that the Federal Government takes up to 37 
percent away from families--away from your dinner tables, away from 
your gas tank, and pays for drag shows in Ecuador, and $85,000 Bob 
Dylan statues, for Pete's sake.
  Americans know how to spend their own money better than politicians 
do. Under the FairTax Act everybody is going to take home 100 percent 
of their paycheck with no Federal taxes withheld.
  Americans would decide how much they pay in taxes through the choices 
they make to purchase and consume goods and services. That means that 
Americans would keep their entire paycheck they worked for and have the 
freedom to decide how they spend their money.

  Flat taxes are sometimes criticized as disproportionately affecting 
lower-income Americans negatively, but the FairTax Act accounts for 
that by preparing a prebate.
  This prebate is an advance tax refund to every legal American family 
at the beginning of every month to purchase goods and services free up 
to the national poverty level. That has been compared, quite frankly, 
to the earned income tax credit, which is part of our Byzantine 
structure today.
  When I was in my first year in law school--this was also 100 years 
ago--this is back before the internet and back when I worked for a tax 
firm, I was their librarian. Every week I went in and for hours I 
updated a room full of tax books--the regulations and the code itself 
being updated all the time as Congress would decide who gets a special 
break and who doesn't.
  The FairTax Act, instead, encourages economic growth. It is more 
efficient and more productive than our current tax code. This means 
investment, wages, and consumption are higher than they are under the 
current income tax.
  In light of the Democrat majority in Congress and the Biden 
administration, both of which have made clear their policies are to 
tax, spend, and control the American people, the FairTax Act provides 
the perfect alternative that gives Americans more freedom.
  Without a national income tax there would be no need to file taxes or 
have an IRS, which this bill defunds. You had me at hello with that.
  In addition to closing the many loopholes in the current tax code, 
the FairTax Act would reach a much larger group of taxpayers, which 
nine States have already seen the benefits of firsthand by eliminating 
their State income taxes.
  Mr. Speaker, I thank Representative Carter for letting me speak on 
behalf of his bill. I think it is a wonderful bill, and I support it. I 
encourage all of my colleagues to support this bill.
  Mr. CARTER of Georgia. Mr. Speaker, I thank the gentleman from 
Arizona for his insightful comments. I think we have all had that aha 
moment when we got our first paycheck, and we said: Wait a minute, I 
was supposed to make X-amount, but I am only taking home this amount. 
Why is that?
  The reason why is because you are having to pay an income tax, a 
payroll tax--you have to pay all these taxes. With a consumption tax, 
the FairTax Act, you decide. If you want to buy a boat, you are going 
to pay taxes. If you don't want to pay taxes, don't buy the boat. That 
is all there is to it.
  I appreciate the gentleman mentioning this about every time you buy 
something you are paying taxes, every time you purchase a good or a 
service. Under the FairTax Act you are only paying for your goods or 
services. You are only paying your tax, not someone else's.
  There is no other tax proposal--serious tax proposal--that would 
overhaul the largest and the most regressive tax that the majority of 
Americans pay, the payroll tax, while making the United States the most 
competitive place in the world to do business.

                              {time}  1800

  It honestly baffles me that my friends on the other side of the aisle

[[Page H1792]]

haven't embraced this proposal with open arms because it will save 
taxpayers time, money, and headaches while ensuring that those with 
more money to spend, AKA the wealthy, pay more taxes. After all, when 
they buy a boat, it is a big boat--usually a yacht--and the taxes on 
the yacht are a lot bigger.
  Now, I am going to buy a jon boat. Taxes aren't going to be as much 
on it. But they buy yachts, and the taxes are high on that. So they are 
going to pay their fair share.
  That is one of the criticisms I always hear: Oh, the wealthy don't 
pay their part.
  Let me tell you, Mr. Speaker, they consume a lot more.
  Who is going to benefit the most from this?
  The people making between $30,000 and $50,000 a year. Those are the 
people who are going to benefit from this. Those are the people whom I 
am talking about here.
  Under this proposal, every legal American family will receive a 
prebate, as was mentioned, on their taxes up to the national poverty 
level.
  So, Mr. Speaker, don't tell me this about: Oh, this is going to 
penalize the very least money earners.
  No. That is not the case at all because the prebate is going to take 
care of that.
  This means that a family of four can spend $30,000 a year without 
paying a penny--without paying a penny--in taxes. That is an effective 
tax rate of zero. Close your eyes, Mr. Speaker. That is how much it is: 
zero.
  No matter how you slice it, this bill is a much better deal for 
middle- and low-income earners than it is for those at the top.
  That is what I don't understand, Mr. Speaker, from those on the other 
side of the aisle who are always saying: Oh, the rich don't pay their 
fair share.
  This is why we have the FairTax Act. This is why we have a 
consumption tax, so they will be paying their fair share.
  I hear this about: Oh, the illegals here don't pay taxes.
  If they are going to buy something here, then they are going to be 
paying taxes now. They are going to be paying the fair tax. We will be 
able to capture that underground economy, if you will.
  As distasteful as it may be, the pimps and the prostitutes are going 
to be paying taxes because they consume. They go out, and they buy 
groceries. They go out, and they buy stuff. That is what you are going 
to be paying the taxes on.
  No matter how you slice it, Mr. Speaker, this bill is a much better 
deal for middle- and low-income earners than it is for those on the 
top.
  The FairTax Act provides freedom to choose when you pay your taxes, 
Mr. Speaker, and how much you spend. You are in control. Don't let 
Washington, D.C., decide how much you are going to pay in taxes. You 
decide.
  That is why the administration and that is why those on the other 
side of the aisle don't like it. It is because they lose control of 
you, and you have control, Mr. Speaker. Instead of taking money from 
every single dollar you earn, you are only paying taxes on the money 
you spend, leaving more room for paying down debt, retirement, college, 
savings, and more.
  All of us speaking in support of this legislation today know that 
this is a big idea. It is a big idea. It is a big change. Although, as 
Mr. Biggs mentioned, there are nine States that do it. Oh, by the way, 
Florida, Texas, and Tennessee don't have an income tax. They are doing 
fine. Some of the strongest economies in the world are right there, and 
they are doing fine.
  We know that overturning an entrenched Tax Code with thousands of 
special interests invested in keeping their carve-outs poses 
significant challenge. It does pose a significant challenge. But we 
didn't come to Congress to maintain the status quo--at least that is 
not why I came here. I thought we were here for big ideas. This is a 
big idea.
  For those who are just turning it off saying: Oh, no. I remind them 
that a closed mind is a dead mind. You have got to have an open mind 
with this, Mr. Speaker. That is why this is so good.
  The only people with something to lose are those who gain their power 
and money on the back of this convoluted, broken system. There are 
those who know how to play it. I know that, and you know that as well, 
Mr. Speaker. That is why it is time for the FairTax Act. That is why it 
is time to put Americans first.
  Mr. Speaker, I yield to the gentleman from Georgia (Mr. Clyde), who 
has an opinion or two about taxes. I know he does. He has had an 
experience with taxes too, like many of us have.
  Mr. CLYDE. Mr. Speaker, I thank my dear friend and fellow Georgian, 
Congressman Buddy Carter, for yielding.
  Mr. Speaker, I am proud to be a staunch supporter and original 
cosponsor of Mr. Carter's FairTax Act, a commonsense piece of 
legislation designed to create a simplified and fair code that works 
for everyone.
  Most Americans would agree that tax season is stressful and at times 
intimidating. This is largely due to the fact that our Tax Code has 
become overwhelmingly complicated and the IRS is generally unavailable 
on the phone. In fact, over the past year, my Gainesville district 
office has processed nearly 200 casework issues involving the IRS, and 
with an IRS backlog of more than 2 million returns, I know this issue 
is felt by taxpayers across the country.
  While great reforms were made in President Trump's 2017 Tax Cuts and 
Jobs Act, I believe the next necessary step is to completely overhaul 
our overly complex Tax Code with the FairTax Act. The FairTax Act 
represents a long-term solution by repealing all Federal, corporate, 
and individual income taxes, payroll taxes, self-employment taxes, and 
death taxes, replacing our misguided system with the revenue-neutral 
personal consumption tax.
  Under the FairTax Act, Americans would be able to keep their entire 
paycheck and only pay taxes on the goods and services that they 
actually purchase. With no national income tax, there would be no need 
to file a tax return. April 15--or in this year's case, April 18, 
today--would become just another beautiful spring day.

  The FairTax Act is also a critical step to truly stop the 
weaponization of the IRS. In 2013, I was a victim of the IRS' abuse 
through unjustified civil asset forfeiture against my small business to 
the tune of $940,000. I relentlessly fought back for months, eventually 
reclaiming my hard-earned money through the court system. Then I took 
my case to Congress leading to the creation and passage of what 
eventually was called the Clyde-Hirsch-Sowers RESPECT Act, which 
President Trump signed into law to ensure no American faces this 
injustice ever again.
  Unfortunately, I know that I am not the only victim of the severe 
overreach of the Internal Revenue Service. In fact, to make matters 
worse, just last year, my Democratic colleagues provided the IRS with a 
whopping $80 billion with the primary purpose of expanding the already 
bloated agency. The IRS recently confirmed it is set to hire nearly 
30,000 new employees over the next 2 years drastically increasing the 
agency's auditing capabilities in order to rake in billions of dollars 
to pay for President Biden's pricey Green New Deal agenda.
  House Republicans' first vote this Congress repealed this unnecessary 
funding authorization, and it is past time for Congress to fully recoup 
this money--sending a strong message that this institution values 
fiscal responsibility and stands against the weaponization of the IRS.
  Not only would Congressman Carter's FairTax Act eliminate the need 
for the IRS, but it would also lead to economic prosperity. Economists 
resoundingly agree that the FairTax Act would significantly boost our 
Nation's economy. Eliminating corporate taxes would incentivize 
corporations to headquarter in the United States, which would provide 
new jobs and economic development in our communities. The cost savings 
these companies experience will drive the competitive market, 
ultimately lowering prices of goods and services for Americans. In 
turn, Americans would have more freedom to reinvest in the economy 
since there would be no tax on pure investments.
  In closing, I am a proud supporter of Representative Carter's FairTax 
Act, and I strongly urge my colleagues to support this commonsense bill 
to not only simplify but also improve our tax system.

[[Page H1793]]

  

  Mr. CARTER of Georgia. Mr. Speaker, I thank the gentleman for 
bringing up some great points.
  Mr. Speaker, I want to very quickly go over a couple of myths, if you 
will. I know you find it hard to believe, but there are some myths out 
there about the FairTax Act.
  First of all, the myth is that the FairTax Act rate is really 30 
percent, not 23 percent. I agree. Twenty-three percent is too high. We 
wish it could be lower, but it is not 30 percent.
  Our current income tax as expressed is an inclusive tax. When 
directly comparing the FairTax Act to our current income tax, the 
FairTax Act rate is 23 percent. Under the FairTax Act, if you would pay 
$100--this is simple math, now--if you pay $100 for a good, $77 goes 
for the good, and there is an inclusive $23 tax.
  If you take the $23 as a percentage of the $100, Mr. Speaker, then 
the tax rate is 23 percent.
  Unfortunately, opponents of the FairTax Act--unbelievably there are 
some out there--typically speak about the FairTax Act in terms of an 
exclusive tax simply because the rate sounds higher to consumers.
  It is 23 percent. It is simple math: 23 percent.
  Not only do opponents of the FairTax Act fail to admit that the 
exclusive and inclusive rates have consumers paying the same amount of 
money, but they also compared the exclusive FairTax Act rate to the 
inclusive income tax rate. That is unfair, and that is misleading. That 
is a myth. It is 23 percent. Again, I get it. I know that is too high. 
I wish it would be lower, but it is not 30 percent. It is 23 percent.
  The only other thing I want to mention at this point is the myth that 
the FairTax Act--and we mentioned this earlier--would hurt the poor and 
give the rich a huge tax cut.
  Baloney.
  The FairTax Act is the only progressive tax reform bill currently 
pending before Congress.
  Each household, as I mentioned earlier, will receive a monthly 
prebate based on Federal poverty levels and household size that will 
allow families to purchase necessary goods such as food, shelter, and 
medicine essentially tax-free--zero percent. This is similar to our 
current individual exemption and refundable tax credit system. It is 
essentially the same thing, but it is far simpler.
  Further, the FairTax Act is not riddled with shelters and loopholes, 
meaning wealthy taxpayers cannot minimize what they pay in taxes 
regardless of how many lawyers and accountants they hire to advise 
them.
  It is simple, it is fair, and it is preferred.
  Mr. Speaker, I yield to the gentleman from Georgia (Mr. Collins). 
Representative  Mike Collins is a great new member of our delegation 
who certainly knows a thing or two about taxes, having been in business 
for many years himself.
  Mr. COLLINS. Mr. Speaker, I thank Mr. Carter for yielding.
  Mr. Speaker, as someone who represents the great University of 
Georgia, it is nice to see him pick up the football and run with this 
thing. My friend is also right. I have spent my private life, over 30-
plus years, in one of the most regulated and taxed industries that 
there are in this country. So, yes, it is very near and dear to my 
heart.
  I want to thank the gentleman also for leading on a Georgia original 
bill which originated with Congressman John Linder.
  The IRS was weaponized early on in the Obama administration, and the 
only thing that came out of that, the result of that, was Lois Lerner 
being found in contempt of Congress, and then we saw the issue go away.
  Now the Biden administration, with the addition of 87,000 IRS agents, 
has a new target: the middle class and small businesses.

  It is time for a new tax system that works for all Americans. So 
today I rise in support of H.R. 25, the FairTax Act.
  Our tax system is in desperate need of reform, and this bill will let 
Americans keep their hard-earned paychecks and get rid of the IRS.
  The FairTax Act will eliminate payroll and income taxes and greatly 
reduce compliance costs on small businesses by replacing all of these 
with a consumption tax on new goods and services.
  The current tax system is purposely complicated, burdensome, and 
confusing so only the well-navigated can navigate the loopholes.
  So why wouldn't we want to make it simpler and more understandable so 
small businesses and workers can thrive?
  From my first day in Congress, I have been focused on making the 
Federal Government more transparent and accountable to the American 
taxpayer. The FairTax Act does just that. Every time Americans buy a 
product or service, they will know exactly how much they will pay in 
taxes and will be able to factor that into their decisions. There will 
be no more complex and expensive end-of-the-year Federal tax filings.
  The only way big legislation is passed in this town is when the 
American people demand it. The way we get them on board is we need to 
hold hearings across this country to explain the ideas and the details 
of the FairTax Act. We need to discuss and debate the bill publicly so 
that the Americans can consider this proposal. Once they hear about it 
though, I am confident that they will support the concept of the 
FairTax Act.
  Let's get to work.

                              {time}  1815

  Mr. CARTER of Georgia. Mr. Speaker, again, here you have a 
businessowner. He knows all about taxes. When he talks about a business 
that is one of the most regulated in the country, he and our previous 
speaker, Representative Clyde, boy, you talk about regulated 
businesses, both of them have regulated businesses. Both of them 
understand firsthand and have personal experience, real-life 
experience, about the IRS and taxes.
  I will address one more myth here, the myth that the FairTax Act will 
unfairly punish senior citizens living off their retirement income. 
Unfairly punish senior citizens living off of their retirement income? 
Wrong. Retired individuals living on fixed incomes will benefit from 
the FairTax Act, just like all other Americans will benefit.
  The new system will eliminate the current income tax on Social 
Security benefits. Have you looked at your Social Security check 
lately? It is not what it started out at because they take out taxes on 
it.
  It will also eliminate the income taxes on investment income, 
something a lot of retirees have and depend on.
  It eliminates taxes on pensions, benefits, and individual retirement 
account, IRA, withdrawals.
  It eliminates all of that, so don't tell me it is going to punish 
retirees. It is going to do just the opposite.
  The monthly prebate will offset the taxes paid by seniors on 
essential goods. I hear this: Old people aren't going to be able to 
afford groceries, and they are not going to be able to afford shelter.
  Wrong. They will be able to afford it. That is what the prebate is 
about. Essentially, up to $30,000 a year for a family of four, your 
essential tax rate is going to be zero, nil.
  Again, senior citizens living off of their retirement income, after 
the initial implementation of the FairTax Act, if prices increase, 
penny for penny, seniors will receive additional Social Security 
benefits until prices return to or below pre-FairTax Act levels.
  This is simple. It is fair. It is preferred.
  Mr. Speaker, I yield to the gentleman from Alabama (Mr. Moore), who 
certainly understands a thing or two about taxes. He has paid enough 
taxes in his life, I am sure.
  Mr. MOORE of Alabama. Mr. Speaker, today, I rise to express my 
support for making tax day a thing of the past. Our current tax code is 
four times as long as the King James Bible but contains none of the 
good news.
  Last Congress, Pelosi and the Democrats made it their mission to hire 
87,000 new IRS agents. Furthermore, Biden's budget calls for the 
highest level of taxation in American history, with $4.7 trillion in 
new taxes.
  A recent analysis by the Tax Foundation found that Biden's $4.7 
trillion tax hike on workers, families, farmers, and small businesses 
would destroy over 300,000 American jobs, cut workers' wages by 1 
percent, and reduce American economic growth by 1.3 percent.

[[Page H1794]]

  President Biden and the Democrats want every day to be tax day, but 
today, I introduced legislation that would abolish the 16th Amendment. 
I am also a proud supporter of the FairTax Act.
  The FairTax Act would eliminate all personal and corporate income 
taxes, abolish the death tax, eliminate gift and payroll taxes, repeal 
the tax code, replace it with a single national consumption tax, and, 
my favorite part, it would abolish the IRS.
  This is the gold standard for tax law and would turn the convoluted, 
abusive, and biased system into a straightforward code that works for 
every American.
  Instead of inflating our already-bloated bureaucracy and continuing 
to punish those who work hard to succeed, Americans deserve a system 
that works for them.
  Mr. Speaker, I thank my colleague Buddy Carter for his work on this 
legislation.
  Mr. CARTER of Georgia. Mr. Speaker, one more myth: The FairTax Act 
will make new homes too expensive, and it will eliminate incentives 
like the mortgage interest rate deduction. I hear this all the time. 
Again, wrong.
  Under the current system, every time a new home is purchased, a home 
buyer is paying an increased price that results from embedded costs. 
See, that is what people don't understand. Taxes are embedded. They are 
embedded in the prices that you are paying right now.
  Under the FairTax Act, when you buy a new home, these embedded costs 
are eliminated, meaning the cost for consumers can fall relative to the 
price of home construction and compliance costs.
  Additionally, under the FairTax Act, mortgage interest rates are 
expected to drop as interest income falls toward the tax-free bond 
rate. Mortgage interest rates are expected to fall under the FairTax 
Act. Wow.
  Mr. Speaker, I yield to the gentleman from Virginia (Mr. Good), a 
great advocate of tax reform.
  Mr. GOOD of Virginia. Mr. Speaker, I thank the gentleman from Georgia 
for his leadership on this critically important issue.
  You might say what the House of Representatives does is tax and 
spend. Thankfully, we are the party that wants to tax less and spend 
less, so it is a win-win for the American people, a win-win for 
freedom, a win-win for Americans as a whole.
  It is appropriate on this day of all days, national tax day, to be 
discussing the state of our tax system. It is no secret to most 
Americans that the IRS does not serve their interests and, worse yet, 
frequently uses its power to target law-abiding American citizens and 
conservative groups. The American people are sick and tired of dealing 
with a broken, confusing, and even hostile tax system.
  My office regularly hears from constituents who simply want to get an 
answer from the IRS when they are trying to do their taxes or want to 
know why they are forced to pay taxes for things such as an inheritance 
from their loved ones.
  Rather than take a hard look at the current situation, the Biden 
administration has made it clear they want to further weaponize the IRS 
against hardworking Americans by spending $80 billion to hire an 
estimated 87,000 new agents to harass, intimidate, and threaten 
taxpayers.

  In fact, in Virginia's Fifth District, one of the things I commonly 
hear is what we need more of is IRS agents. Of course, I have never 
heard that in Virginia's Fifth District.
  The American people deserve a better tax system that does not 
needlessly target them or even punish them for doing their best to work 
hard, put food on the table, and comply with an ever-more-complicated 
tax code.
  The addition of these 87,000 IRS agents should raise alarm bells for 
all Americans since the IRS and its employees regularly do not follow 
the limits of their lawful directive. We can point to example after 
example.
  As a matter of fact, just last month, an IRS employee was found 
guilty of three counts of wire fraud, two counts of aggravated identity 
theft, five counts of aiding and assisting in the preparation and 
presentation of a false and fraudulent return, and three counts of 
making and subscribing a false and fraudulent tax return.
  Clearly, the American people do not need a more powerful and 
emboldened IRS. The current system must change, and that is where this 
bill from the gentleman from Georgia (Mr. Carter) comes into play.
  The FairTax Act tax system is easy to understand, and it will save 
billions in compliance for taxpayers and the Federal Government. It 
holds all Americans to the same standard, a 23 percent sales tax. In 
doing so, Americans will not be onerously taxed on what they earn. 
Instead, they pay a fair tax on what they consume. It puts Americans in 
control of the taxes that they pay.
  It removes the discrimination that is in the tax system because 
everybody pays taxes based on what they consume. Organized crime pays 
taxes. Crime cartels pay taxes. The Mafia pays taxes. Tax cheats are 
paying. Under-the-table earners are paying. You get the idea.
  Today, the average American worker is forced to pay the Federal 
Government 33 cents of every dollar they earn as opposed to what we are 
proposing today, which is the fair tax of 23 cents for every dollar 
they spend if they choose to spend it.
  Thanks to the prebate plan in this bill, taxpayers will be able to 
spend up to the poverty guideline and have that amount be exempt from 
the impact of the 23 percent tax.
  Implementing this national sales tax will double the number of 
taxpayers in the system. Instead of having just about 150 million 
taxpayers who are currently having to pay income taxes, this would 
bring about 300 million Americans as consumers into the tax revenue. 
Everybody would be participating based on what they consume.
  Wealthy people would pay more because they spend more and make more 
expensive purchases, not to mention 51 million annual foreign tourists 
and some 12 million illegal immigrants in our country, illegal aliens 
who reside here.
  The FairTax Act is a commonsense reform that will unburden the 
American people and stimulate economic growth. Individuals will have 
more control over their finances and not be threatened with penalties 
or double taxation for investing and saving their own money.
  Rather than guess how much you owe each year or how much the 
government owes you, which a lot of us just had to do here, the FairTax 
Act will enable taxpayers to know exactly how much they are paying.
  Mr. Speaker, I thank my friend Buddy Carter for his leadership on 
this that will put the American taxpayer first, unleash economic 
growth, and hold everyone accountable to one simple tax requirement.
  Mr. CARTER of Georgia. Mr. Speaker, did you hear what he just said? 
Unleash American growth. Unleash American growth. Wow. What great 
words.
  Mr. Speaker, the bottom line: Our current tax system is broken. It is 
broken, and it is oppressive. The FairTax Act allows Americans to keep 
100 percent of their paycheck, of their hard-earned paycheck, and it 
ends the IRS headache.
  A family of four earning $30,000 a year is going to pay zero, not one 
penny, in taxes. Further, this bill will save small businesses hundreds 
of billions of dollars a year in compliance costs, making it easier to 
start and grow a business here in America--we need that; we need more 
small businesses--by capturing the underground economy.
  Almost every speaker has talked about this. We are going to be 
capturing the underground economy--tourism dollars, purchases made by 
illegal immigrants.
  This bill will save Social Security while leaving more money in the 
hands of the American people and revolutionizing our economy.
  Mr. Speaker, I yield to the gentleman from New York (Mr. Santos), the 
latest sponsor of the FairTax bill.
  Mr. SANTOS. Mr. Speaker, the American people need tax relief, and I 
rise today to share my unapologetic support for the FairTax Act.
  Taxes continue to skyrocket in States like New York. Many of my 
constituents pay nearly $50,000 in local taxes. Of that amount, $10,000 
can be deducted from gross income. The rest gets taxed twice.
  I have introduced two bills regarding tax deductions: H.R. 1260, the 
SALT

[[Page H1795]]

Relief Act, and H.R. 2634, the Alimony Relief Act. Both of my bills 
seek additional deductions for taxpayers forced to submit to 
government-directed payments.
  Regarding alimony, I hope to repeal the section of law within the Tax 
Cuts and Jobs Act of 2017 that places the tax liability of government-
mandated payments on the person who makes the payment and not the 
payee. Why should the person earning the money but not spending it pay 
the tax liability?
  Mr. Carter's FairTax Act ensures that we pay taxes on what we buy 
rather than on what we earn. It would make both of my bills 
unnecessary. The hours spent every year doing tax returns wouldn't be 
necessary, and Americans would have more time to spend with their 
families.
  I hope we can make real progress on the FairTax Act, but in the 
meantime, I would welcome my colleagues to support my efforts. I look 
forward to the day when a simpler tax code is afforded to all of our 
constituents.

  Mr. CARTER of Georgia. Mr. Speaker, I thank the gentleman for his 
very insightful comments. I appreciate that very much. I thank all of 
my colleagues for their support and for speaking in favor of America's 
favorite tax proposal. Yes, it has been around. It has been around for 
quite a while now, but its time has come.
  This bill, in fact, was first proposed by Representative John Linder, 
a member of the Georgia delegation whose chief of staff,  Rob Woodall, 
took over the bill when he was elected to Congress, another Georgian. 
When Rob retired, he asked me if I would take over this legislation, 
and I was honored to do so because I made a commitment when I became a 
Member of Congress that this would be the first bill I would cosponsor 
as a Member of Congress, and it was. It has been ever since I have been 
a Member of Congress.
  Cosponsoring this bill was my first act as a Member of Congress, and 
I am eager to see this landmark bill finally get the attention and 
legislative action it deserves. It is fair; it is simple; it is 
preferred. You are in control. You decide how much you want to pay in 
taxes, not some unelected bureaucrat, not some Member of Congress who 
decides they need a loophole or a tax break for something. No, you are 
going to decide. You are going to decide what you are going to pay 
taxes on and what you are not going to pay taxes on.
  Again, as I started out tonight, today could be the last tax day our 
country ever sees. Let that sink in. Today could be the last tax day 
our country ever sees. All we have to do is adopt the FairTax Act, a 
consumption tax.
  Mr. Speaker, I yield back the balance of my time.

                          ____________________