Biden Vows to Veto Republican ‘Fair Tax Act’ That Proposes IRS Repeal – Bitcoin News

A number of Republicans in the US House of Representatives have proposed a bill that would significantly reduce funding for the Internal Revenue Service (IRS). The move comes after Speaker-elect Kevin McCarthy said he would challenge the previous year’s funding of the IRS.

Biden Administration Opposes IRS Tax Enforcement Defunding Bill

House Republicans voted for the bill after US House Speaker Kevin McCarthy announced his intention to eliminate tens of billions in funding approved for the Internal Revenue Service (IRS) last year. federal income tax and replace it with a “Fair Tax” to be collected by each state and a national consumption tax. The bill is called the “Family and Small Business Taxpayer Protection Act” and calls for “repeal of certain funds submitted to the IRS.”

HR 25, also known as the Fair Tax Act, was co-sponsored by Representative Earl L. “Buddy” Carter (R-GA). “Instead of adding 87,000 new agents to arm the IRS against small business owners and Middle America, this bill would eliminate the need for the department entirely by simplifying the tax code with provisions that work for the American people and encourage growth and innovation.” Carter said in a statement. “Armed, unelected bureaucrats shouldn’t have more power over your paycheck than you do.”

Biden, the Republican who proposed to abolish the IRS
“This reckless bill would increase the deficit by nearly $115 billion over 10 years, according to estimates by the Congressional Budget Office, by giving wealthy tax evaders additional tax evasion and avoidance opportunities,” the Biden administration said in a January 9 statement. 2023.

Reports indicate that the proposed bill does not have the support of Democrats who currently control the Senate. In addition, the White House has announced that US President Joe Biden will veto any bill to fund the Internal Revenue Service (IRS). A statement from the Biden administration emphasized that “the bill would eliminate funding passed in the Inflationary Reduction Act (IRA), which allows the IRS to crack down on large corporations and high-income individuals who cheat and evade taxes. the law.”

The White House added:

If the president were presented with HR 25 – or any other bill that would allow the wealthiest Americans and largest corporations to cheat on taxes while honest, hardworking Americans have to pay taxes – he would veto it.

Meanwhile, the Internal Revenue Service (IRS) is set to have a new commissioner to lead the tax agency, and reports indicate that it will be Danny Werfel. The news also follows comments from the special agent in charge of the New York office of the IRS-Criminal Investigation that “cryptocurrency is here to stay.”

Recently, American cryptocurrency advocates have been concerned about a new tax reporting requirement that will require digital currency exchanges Venmo, Cash App, PayPal, Airbnb and eBay to send their users 1099-K forms. The IRS focused on payments of $600 or more for goods and services purchased through a third-party payment network in its unbending review.

US lawmakers want Americans to believe that the $600 rule and the deployment of 87,000 new IRS agents are a concerted effort to fight nefarious billionaire tax evaders and mega-corporations. However, many Americans are not so easily swayed and believe that this additional enforcement and the $600 rule is nothing more than a nonsensical ploy aimed at ordinary people.

Defending IRS Repeal: An Opinion Repeated by Various Proponents

The bill isn’t the first time Republican officials have discussed dismantling the IRS. On October 30, 2022, US Senator Ted Cruz (R-TX) of Texas tweeted, “Abolish the IRS!” and repeated mood earlier this week.

Former Rep. Ron Paul, R-Texas, has advocated shutting down the IRS on multiple occasions. Paul believes that the IRS is intrusive and that it violates privacy rights by requiring individuals and businesses to disclose personal financial information. He advocated a flat tax or national sales tax as an alternative to the current income tax system.

The late American economist, historian, and political theorist Murray Rothbard also argued that the IRS represented a violation of property rights and an illegal use of government power. Rothbard wrote extensively on the subject, and in his view, the IRS, as the executive arm of the state, was an instrument of coercion and coercion and should therefore be abolished. Meanwhile, regarding the Fair Tax Act, Rep. Bob Goode (R-VA) said he supports the Fair Tax “because it simplifies our tax code.”

“This transforms the US tax code from a coercive, progressive and complex system to a fully transparent and impartial system that eliminates the IRS as we know it,” the Virginia representative added.

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What do you think about Biden saying he will veto the Fair Tax Act? What effect will repealing the IRS and implementing the Fair Tax Act have on the US economy? Share your thoughts in the comment section below.

Jamie Redman

Jamie Redman is Head of News at News and a fintech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about disruptive protocols emerging today.

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