U.S. Rep. Rob Woodall (R-Ga) introduced the FairTax bill, H.R. 25, on Thursday in the House of Representatives on the first day of the 113th Congress.
Woodall, who represents Georgia’s 7th congressional district, filed the legislation with 53 cosponsors, more than the bill ever had before since it was first introduced in 1999.
The FairTax proposal would eliminate all taxes paid according to the existing system (real estate, income, gift, etc.) and replace it with a single national consumption tax on retail sales. The tax would apply to all new goods and service purchases.
FairTax also proposes a prebate to protect the lowest income individuals; prebate would be a monthly pre-payment to legal U.S. residents ensuring that all “necessities of life” up to a poverty level are free of tax.
Therefore, FairTax creates a progressive tax system, where a person spending at or below poverty level never pays any taxes, while a wealthy individual who buys the most- pays the most in taxes.
“The momentum is building for fundamental tax reform and it’s fueled by the American people,” said Woodall. “We finished the 112th Congress with the highest number of combined cosponsors in the House and Senate that the FairTax has seen. While I wish I could take credit for these gains, I cannot. The credit goes to the tens of thousands of FairTax advocates across America who pursue, with tenacity and zeal, the FairTax’s advancement in their hometown and with their Congressman and Senators. I’m grateful for their hard work and their commitment to America. They are changing minds and making a difference in Congress.”
The legislation is cosponsored by several House Republicans from Georgia: Tom Price, Lynn Westmoreland, Phil Gingrey, Tom Graves, Doug Collins, Paul Broun and Jack Kingston.
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