House GOP seeks to abolish IRS, replace income tax with consumption tax

Fifty-four House Republicans on Thursday reintroduced legislation that would terminate the IRS and replace the system of income taxes on people and corporations with a consumption tax. 

The FairTax Act, from Rep. Rob Woodall (R-Ga.), would abolish the 16th Amendment, which was ratified 100 years ago this February. That amendment gives Congress the power to impose income taxes without having to spend the revenues evenly among the states.
Woodall's bill, H.R. 25, would replace the current tax system with a 23 percent consumption tax on all new goods and services. He said Thursday that this change would eliminate the need for a complicated tax code, and would be the kind of tax reform that helps reinvigorate the economy. 

"The momentum is building for fundamental tax reform, and it's fueled by the American people," he said. "By passing the FairTax, Congress can shield middle-class Americans from the burden of the payroll tax, the largest tax burden that most American families bear.
"The FairTax would make it easier for businesses to grow and hire new workers by abolishing America's corporate income tax, currently the highest in the world." 

Woodall argues that eliminating the corporate income tax would give companies an incentive to repatriate billions of dollars from overseas that would be subject to taxes under current law. 


Specifically, the bill would repeal the payroll tax, individual and corporate income taxes, the self-employment tax, and estate and gift taxes. 


It would be replaced with a 23 percent consumption tax that people living at or below the poverty rate would not have to pay. The bill would require a "probate" to be paid to all residents that is equal to the consumption tax the poor would normally pay, thus sparing them from taxes completely. 

Among the 53 Republican co-sponsors are House Financial Services Committee Chairman Jeb Hensarling (R-Texas) and Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.). 

The 112th Congress ended with 70 co-sponsors for Woodall's last version of his FairTax bill.



http://www.rumormillnews.com/cgi-bin/forum.cgi?read=265613

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WOODALL INTRODUCES FAIRTAX BILL ON DAY ONE WITH
RECORD NUMBER OF ORIGINAL CO-SPONSORS

Washington, DC—On Wednesday, January 5, 2011, Congressman Rob Woodall (GA-07) introduced H.R. 25, the FairTax.  The FairTax legislation eliminates the current income tax paradigm and replaces it with a system of taxation based on consumption.  The bill was introduced on Wednesday with 47 original co-sponsors—the most original co-sponsors the bill has ever had for its initial introduction.

“I committed to the Seventh District of Georgia that my efforts in Congress would focus on reclaiming freedom for theAmerican people.  It is for that reason that I am proud to make the FairTax—the only bill that restores transparency and simplicity to our tax code—my very first action in Congress.  I have said since its inception that the FairTax is not a tax bill; it is a freedom bill,” Woodall said.

Woodall, who was sworn-in to Congress earlier in the day, played an integral role in crafting the original text of the FairTax as former Congressman John Linder's Chief of Staff when the bill was originally introduced in 1999.

"Our current tax system is a bloated, convoluted mess that gives government power over Americans' pockets.  With 47Members of Congress and counting signing their names to the FairTax, we are closer than ever before to voting on legislation that eliminates the frustrating mess that is the IRS."

Although the FairTax was introduced with 47 original co-sponsors, Woodall anticipates adding many more Members of Congress to the bill.  Once the FairTax is introduced with the original co-sponsors, Members are able to sign on to the bill as co-sponsors throughout the 112th Congress.

"The number of signatures on the FairTax this time around is a testament to the will of the people.  It is clear that Americans do not want to have their hard-earned money taken away and they want to reclaim the freedom to spend their money how they choose and when they choose.”

The list of original co-sponsors is as follows:

1) Tom Price (GA)
2) Brian Bilbray (CA)
3 ) John Carter (TX)
4 ) Michael Conaway (TX)
5 ) John Duncan (TN)
6) Virginia Foxx (NC)
7) Steve King (IA)
8) Michael McCaul (TX)
9) Pete Olson (TX)
10 ) John Sullivan (OK)
11 ) Mac Thornberry (TX)
12) Phil Gingrey (GA)
13) Roscoe Bartlett (MD)
14) Don Young (AK)   
15) Ander Crenshaw (FL) 
16) Todd Akin (MO)
17) Lynn Westmoreland (GA)
18) Tom Graves (GA) 
19) Gus Bilirakis (FL)
20) Ted Poe (TX)
21) Randy Neugebauer (TX)
22) Jeff Miller (FL)
23) Robert Wittman (VA)
24) Jack Kingston (GA)
25) Marlin Stutzman (IN)
26) Jeff Flake (AZ)
27) Billy Long (MO)
28) Cliff Stearns (FL)
29) Tim Walberg (MI)
30) Dennis Ross (FL)
31) Dan Boren (OK)
32) Mo Brooks (AL)
33) Darrell Issa (CA)
34) Richard Nugent (FL)
35) Tim Scott (SC)
36) Blake Farenthold (TX)
37) Jeff Duncan (SC)
38) Rob Bishop (UT)
39) Mike Pence (IN)
40) Sandy Adams (FL)
41)  John Mica (FL)
42) Sue Wilkins Myrick (NC)
43) Dan Burton (IN)
44) John Culberson (TX)
45) James Lankford (OK)
46) Mike Pompeo (KS)
47) Gary Miller (CA)
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Jennifer Drogus
Communications Director Congressman Rob Woodall

http://www.fairtaxnation.com/profiles/blogs/fairtax-bill-introduced-rob