On today's episode of The Brian Nichols Show, we're actually talking about abolishing the IRS! But we're doing it in a roundabout way! Listen as Steve Hayes from the Americans for Fair Taxation joins us to outline how the FAIRtax could actually help us abolish the IRS on our path of eliminating the income tax.
"We started working on this idea of eliminating the income tax, totally eliminating it, and replacing it with an excise tax - effectively what we had in the Constitution, which is a retail sales tax on the federal level.
It would be on new goods and purchases - and emphasize new - not used, but new goods and purchases, and retail services. If you go get your haircut, you get it if you're a lady and you get a manicure, those are retail, those are going to be subject to the fair tax. The fair tax rate is 23%.
The idea is that what you're going to do is get your entire paycheck. Because we fund the government differently. We don't fund it with an income tax and the payroll taxes like now - we fund it by giving you all of your money so that you're in charge of how much tax you pay.