Revenue Neutral Personal Consumption Tax

Floor Speech

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Mr. CLYDE. Mr. Speaker, I thank my dear friend and fellow Georgian, Congressman Buddy Carter, for yielding.

Mr. Speaker, I am proud to be a staunch supporter and original cosponsor of Mr. Carter's FairTax Act, a commonsense piece of legislation designed to create a simplified and fair code that works for everyone.

Most Americans would agree that tax season is stressful and at times intimidating. This is largely due to the fact that our Tax Code has become overwhelmingly complicated and the IRS is generally unavailable on the phone. In fact, over the past year, my Gainesville district office has processed nearly 200 casework issues involving the IRS, and with an IRS backlog of more than 2 million returns, I know this issue is felt by taxpayers across the country.

While great reforms were made in President Trump's 2017 Tax Cuts and Jobs Act, I believe the next necessary step is to completely overhaul our overly complex Tax Code with the FairTax Act. The FairTax Act represents a long-term solution by repealing all Federal, corporate, and individual income taxes, payroll taxes, self-employment taxes, and death taxes, replacing our misguided system with the revenue-neutral personal consumption tax.

Under the FairTax Act, Americans would be able to keep their entire paycheck and only pay taxes on the goods and services that they actually purchase. With no national income tax, there would be no need to file a tax return. April 15--or in this year's case, April 18, today--would become just another beautiful spring day.

The FairTax Act is also a critical step to truly stop the weaponization of the IRS. In 2013, I was a victim of the IRS' abuse through unjustified civil asset forfeiture against my small business to the tune of $940,000. I relentlessly fought back for months, eventually reclaiming my hard-earned money through the court system. Then I took my case to Congress leading to the creation and passage of what eventually was called the Clyde-Hirsch-Sowers RESPECT Act, which President Trump signed into law to ensure no American faces this injustice ever again.

Unfortunately, I know that I am not the only victim of the severe overreach of the Internal Revenue Service. In fact, to make matters worse, just last year, my Democratic colleagues provided the IRS with a whopping $80 billion with the primary purpose of expanding the already bloated agency. The IRS recently confirmed it is set to hire nearly 30,000 new employees over the next 2 years drastically increasing the agency's auditing capabilities in order to rake in billions of dollars to pay for President Biden's pricey Green New Deal agenda.

House Republicans' first vote this Congress repealed this unnecessary funding authorization, and it is past time for Congress to fully recoup this money--sending a strong message that this institution values fiscal responsibility and stands against the weaponization of the IRS.

Not only would Congressman Carter's FairTax Act eliminate the need for the IRS, but it would also lead to economic prosperity. Economists resoundingly agree that the FairTax Act would significantly boost our Nation's economy. Eliminating corporate taxes would incentivize corporations to headquarter in the United States, which would provide new jobs and economic development in our communities. The cost savings these companies experience will drive the competitive market, ultimately lowering prices of goods and services for Americans. In turn, Americans would have more freedom to reinvest in the economy since there would be no tax on pure investments.

In closing, I am a proud supporter of Representative Carter's FairTax Act, and I strongly urge my colleagues to support this commonsense bill to not only simplify but also improve our tax system.

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