Senators Drop Bills Abolishing IRS & IRC | AccountingWEB

Senators Drop Bills Abolishing IRS & IRC

Two bills were introduced in the Senate last week that would abolish Internal Revenue Service and the Internal Revenue Code, accoridng to the NAEA E@lert.

The first bill, S. 1025, introduced by Senator Saxby Chambliss (R-GA), would defund the IRS and replace Subtitles A, B, and C of the tax code with a 23 percent tax-inclusive sales tax, to be administered by the states. (The tax-inclusive rate means a one-dollar purchase would include 77 cents of product and 23 cents of tax – by traditional standards of calculating sales tax, it would be considered a 30 percent sales tax.

E@lert called it "a fairly transparent attempt to make the rate appear lower than it is." An identical bill introduced in the House has 58 cosponsors.

Meanwhile, S. 1040, introduced by Senator Richard Shelby (R-AL), would replace the marginal income tax rates with a single 17 percent flat rate, and repeal the estate tax. At press time, S. 1040 was not available to view.

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