Cornyn Co-Sponsors Fair Tax Act

Press Release

Cornyn Co-Sponsors Fair Tax Act

U.S. Sen. John Cornyn, a member of the Senate Budget Committee, co-sponsored legislation this week to significantly reform the way taxes are collected in America. The Fair Tax Act replaces most current major federal taxes with a national retail sales tax.

"Our current tax system ought to be replaced by a more fair and simple process," Sen. Cornyn said. "This legislation is an overdue, important step to relieve an unnecessary burden on all American taxpayers and will ensure that our economy remains the strongest in the world. The fair tax has been talked about for decades, and now there is increasing support for making a change, in the name of fairness and efficiency."

The Fair Tax Act would eliminate income, capital gains, payroll, estate, gift, corporate and self-employment taxes, and replace them with a national retail sales tax. The IRS would also be significantly downsized and reformed.

"The key to economic prosperity is keeping taxes low for Americans and their businesses. That's the way to reward initiative, and to promote job creation and economic growth," Sen. Cornyn said. "Reclaiming the reins of our runaway federal income tax system will help promote a strong economy. A national retail sales tax is a simple and viable alternative to our current federal income-tax system."

The bill was introduced by U.S. Sen. Saxby Chambliss (R-Ga.) and co-sponsored by Sens. Tom Coburn (R-Okla.) and Johnny Isakson (R-Ga.).

Key provisions of the Fair Tax Act:

* Repeals the federal income tax, including capital gain taxes, all payroll taxes, the estate and gift tax, and corporate and self-employment taxes, and enacts a federal retail sales tax;
* Applies the tax only to the sale of new goods and services made to consumers; and
* Provides every household a monthly rebate check to cover part of the sales tax paid on essential goods and services.

Sen. Cornyn co-sponsored the Fair Tax Act in the 109th Congress.

Sen. Cornyn serves on the Armed Services, Judiciary and Budget Committees. In addition, he is Vice Chairman of the Senate Republican Conference and the Senate Select Committee on Ethics. He serves as the top Republican on the Judiciary Committee's Immigration, Border Security and Refugees subcommittee and the Armed Services Committee's Airland subcommittee. He served previously as Texas Attorney General, Texas Supreme Court Justice and Bexar County District Judge.

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