As people file their taxes this season, they should be aware that the numbers may look different next year — and not in a good way. That is because as the nation recovers from a pandemic in which many lost their jobs, Democrats want to raise taxes.
In this moment of turmoil in our country, my colleagues on the other side of the aisle are focused on who should pay more. No hardworking person or job creator is safe.
However, there is an easy solution to this attack on paychecks: the FairTax.
The FairTax would eliminate the federal income, payroll, and estate and gift taxes and replace them with a revenue-neutral national 23% consumption tax.
This would level the playing field, allowing people to keep every cent of their hard-earned money while ensuring everyone pays their fair share.
Every single person, whether they were born in America, immigrated here 20 years ago, or came illegally across the border yesterday, would pay a 23% tax on new goods and services.
The FairTax’s approach would capture tax revenue from the spending of the estimated 11 million illegal immigrants in the United States, and with a crisis along our southern border, that number may continue to grow. The FairTax also eliminates tax benefits that illegal immigrants have been able to take advantage of. While illegal immigrants are not eligible for federal public benefits, a 2011 Treasury Inspector General report found that individuals who are not authorized to work in the U.S. were paid $4.2 billion in refundable tax credits.
The FairTax would rid us of the need for tax credits or an Internal Revenue Service to ensure they are properly used.
Also, by eliminating the income tax, those who fail to pay income tax on income earned through illegal activities such as drug dealing will be put on the same playing field as everyone else.
Many states have already seen success with a similar approach. States such as Florida and Texas, two of the fastest-growing states, as proven by the recent census, have no income tax and are attracting more and more people from higher-taxed states, such as California and New York.
Conservatives must rally around this plan in opposition of President Joe Biden and the Democrats’ plan to raise taxes. There’s little doubt that the effects of such increases will cost families and be a drain on our economy, just as similar policies were under the Obama administration.
One only has to look at the effects of the Tax Cuts and Jobs Act of 2017 to see what happens when we allow people to keep more of their income instead of forking it over to bureaucrats in Washington. After the passage of the TCJA, America’s growth in 2018 was 2.9%, which was nearly twice Germany’s 1.5% and more than twice Britain's 1.3%. Up until the COVID-19 pandemic, unemployment was at record lows and wages were rising. These are the positive impacts that the FairTax will build upon.
People collectively spend more on taxes than they do on food, clothing, and housing combined, only to see partisan gridlock over how it is spent. No wonder trust in government is on the decline.
America needs the FairTax to create a simple and fair system for all.
Rep. Earl L. “Buddy” Carter represents Georgia's 1st Congressional District in the U.S. House of Representatives.