As Americans rush to finish their taxes before the April 15 deadline, it’s a good time to take the pulse on congressional efforts to change the tax system.
We know one thing for sure — a plan with Georgia roots still isn’t going anywhere.
For a little while in 2023, the FairTax — an idea first put forward by then-U.S. Rep. John Linder and veteran Atlanta radio talk show host Neal Boortz — was suddenly in the spotlight in Congress. But once again, it was all talk and no action.
“I’m disappointed that we haven’t been able to at least get it before committee,” said U.S. Rep. Buddy Carter, R-St. Simons Island, who has taken charge of the FairTax in Congress. “I think the people want to see a vote on it.”
The FairTax would make two sweeping changes: It would get rid of the federal income tax system and replace it with a 23% “tax inclusive” national sales tax, which amounts to a 30% sales tax at the register.
Carter has seen a slight uptick in the number of supporters for the FairTax — now at 26 House members. But that’s far below the 75 sponsors back in 2016.
When Republicans took charge of the U.S. House in 2023, a vote on the FairTax was supposedly one of the promises then-Speaker Kevin McCarthy made to more conservative Republicans.
Suddenly the FairTax became an easy political target.
“They want to raise taxes on the middle class by taxing thousands of everyday items,” President Joe Biden declared as he took the opportunity to tar and feather Republicans with it, whether they supported the FairTax or not.
“I love their 30% sales tax,” Biden said sarcastically in one meeting with congressional Democrats.
Former President Donald Trump joined the fray earlier this year, claiming — wrongly — that Republican Nikki Haley was a FairTax supporter.
“Nikki Haley wants to charge the working class a 23% national sales tax,” Trump said the day before the New Hampshire primary.
The struggles for the FairTax are a broader reminder of how easy it is to talk about dramatically altering how Americans are taxed — but how hard it is to simplify the system.
It’s one main reason why Republicans have opted for general tax cuts rather than pursuing substantive structural changes.
Congress may get another chance to debate the measure in 2025, when the individual tax cuts Trump signed into law when he was president expire.
But my tax advice is simple — don’t hold your breath for major changes, and that’s especially true for the FairTax.
Jamie Dupree has covered national politics and Congress from Washington since the Reagan administration. His column appears weekly in The Atlanta Journal-Constitution. For more, check out his Capitol Hill newsletter at http://jamiedupree.substack.com.
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