The GOP recently introduced the Fair Tax Act, which would completely abolish the Internal Revenue Code as we know it. The act would eliminate all income taxes, payroll taxes, estate taxes and gift taxes. These taxes would be replaced by a flat 30% sales tax that would be collected at the state level and transferred to the federal Treasury.
We asked two professors and authors of ALM’s Tax Facts with opposing political viewpoints to share their opinions about the most recent proposals from GOP leaders calling for eliminating the tax code entirely.
Below is a summary of the debate that ensued between the two professors.
Their Votes:
Their Reasons:
Bloink: As the release of former President Trump’s tax returns have shown us, the current system for taxing Americans blatantly favors the rich. While the former president didn’t necessarily break the law, he used various manipulative schemes and loopholes to pay virtually no income tax. That’s not fair. Replacing the current complex system with a flat sales tax is one way to start fixing the problem.
Byrnes: GOP proposals to eliminate the tax code entirely are ridiculous and will never be taken seriously, even within their own party. The tax code is complex because it serves a variety of purposes. We use the tax system to encourage certain behaviors and help our business owners continue to grow our economy, all while providing benefits to individual Americans.