It may not be fair, but tax policy considerations are already a circus this Congress.
*NSBA would like to extend apologies for the typo you may have noticed in our Weekly Advocate regarding Speaker McCarthy’s party affiliation: Majority Leader McCarthy is Speaker for the Republican party (R-Calif.).
On Jan. 9, Rep. Buddy Carter (R-Ga.) introduced legislation, the Fair Tax Act of 2023 (H.R. 25), which would effectively abolish the IRS, do away with the current federal income tax, payroll taxes, gift taxes, and all other federal taxes and replace it with a 30 percent national sales tax.
The bill is being moved forward in the House for a floor vote, one of the concessions Speaker Kevin McCarthy made with the Freedom Caucus during his run for the Speakership.
While the bill has support from a broad swath of Republicans, Capitol Hill insiders say it is reportedly being considered dead-on-arrival in the Senate.
That said, NSBA has historically supported efforts to simplify and streamline the federal tax code—something the Fair Tax aims to do.
In recent years, small businesses have ranked the complexity of the tax code as a bigger problem than its actual financial burden.
No specific date has been identified for a vote on the legislation.
Follow NSBA, and check back here for more as we continue to advocate for common sense tax reform supportive of small business opportunities.