Wednesday, July 2, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

What to know about the Republican plan

by Euro Times
January 29, 2023
in Markets
Reading Time: 2 mins read
A A
0
Home Markets
Share on FacebookShare on Twitter


John Miller | iStock | Getty Images

A group of House Republicans is revisiting the Fair Tax Act, which would replace certain federal levies with a national sales tax and decentralize the IRS.

While the plan may not get a floor vote and wouldn’t make it through the Democrat-controlled Senate, policy experts say the plan would make the tax system more regressive, meaning the burden decreases as income gets higher.

Introduced in early January, the proposal would eliminate income, payroll, estate and gift taxes, to be replaced with a 23% national sales tax. The proposal also aims to decentralize the IRS by slashing the agency’s funding, relying on individual states to administer the levy.

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

While the plan was first introduced in 1999, it’s never been given a floor vote, and has only been supported by a small group of Republicans, said Erica York, senior economist and research manager at the Tax Foundation.

“It’s not a mainstream or popular tax reform idea,” York said, noting the administrative side “doesn’t make a lot of sense” because it would involve 51 state agencies rather than a single IRS.

It’s not a mainstream or popular tax reform idea.

Erica York

Senior economist and research manager at the Tax Foundation

The reintroduction of the Fair Tax Act comes amid increased scrutiny of the $79.6 billion in IRS funding, enacted through the Inflation Reduction Act in August. The money has been earmarked for priorities such as enforcement, taxpayer service, technology upgrades and more.

After months of critique, House Republicans in January voted to rescind the funding. But the plan was largely seen as political messaging since neither Senate Democrats nor the White House supported the measure.

A ‘pretty significant’ tax hike for the middle class

While the Fair Tax Act isn’t likely to gain traction in Congress, experts say the plan would be a significant change for middle-income earners and the wealthiest Americans.

If it were enacted, middle-income earners would see a “pretty significant tax increase” and the wealthiest Americans would see the biggest cuts, according to John Buhl, senior communications manager at the Tax Policy Center.  

He said the plan would make the tax system more regressive, despite the built-in monthly rebates for families below a certain income level, especially since the 23% rate is “tax-inclusive” and will actually cost consumers about 30%.

What’s more, both experts say the sales tax wouldn’t be enough to make the plan “revenue neutral,” which may be an issue as Republicans fight for tightened spending amid the debt ceiling battle.



Source link

Tags: PlanRepublican
Previous Post

Salesforce appoints ValueAct’s Morfit to its board and a proxy fight may loom ahead

Next Post

Being exposed to videos of police killings can lead to symptoms of PTSD : NPR

Related Posts

Nike (NKE) bets on innovation and brand distinction to get back on track

Nike (NKE) bets on innovation and brand distinction to get back on track

by Staff Correspondent
July 2, 2025
0

Nike’s (NYSE: NKE) inventory rallied after the sneaker large reported stronger-than-expected fourth-quarter outcomes final week. Nevertheless, the numbers declined year-over-year...

Is Crypto About to Fuel the Next Housing Boom?

Is Crypto About to Fuel the Next Housing Boom?

by Ian King
July 1, 2025
0

Lately, I wrote about how blockchain may spark the following actual property growth. Simply days after I printed that article, we’re...

Wall Street strategist Tom Lee is aiming to create the MicroStrategy of Ethereum

Wall Street strategist Tom Lee is aiming to create the MicroStrategy of Ethereum

by Tanaya Macheel
July 1, 2025
0

Fundstrat's Tom Lee is becoming a member of a bit of identified bitcoin miner aiming to change into the most...

Variable Universal Life Insurance (VUL): What You Need to Know

Variable Universal Life Insurance (VUL): What You Need to Know

by Robin Hartill, CFP®
June 29, 2025
0

Variable common life insurance coverage is a everlasting coverage with a versatile demise profit and premiums.VUL insurance policies can help...

Top Wall Street analysts like these 3 dividend stocks for enhanced returns

Top Wall Street analysts like these 3 dividend stocks for enhanced returns

by TipRanks.com Staff
June 30, 2025
0

An indication sits in entrance of a McDonald's restaurant on Could 13, 2025 in Chicago, Illinois. Scott Olson | Getty...

Cut Costs Not Quality: 5 Grocery Upgrades That Save Money in the Long Run

Cut Costs Not Quality: 5 Grocery Upgrades That Save Money in the Long Run

by Logan Kirkby
June 30, 2025
0

Prostock-studio / Shutterstock.comGrocery costs stay excessive, and many consumers search for methods to trim their payments with out giving up...

Next Post
Being exposed to videos of police killings can lead to symptoms of PTSD : NPR

Being exposed to videos of police killings can lead to symptoms of PTSD : NPR

Proof Reveals Artists Behind Grails III NFT Release, Urging Collectors to Appreciate Digital Art Over Hype

Proof Reveals Artists Behind Grails III NFT Release, Urging Collectors to Appreciate Digital Art Over Hype

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

SEC Clears Grayscale Digital Large Cap Fund for NYSE Arca ETF Listing

SEC Clears Grayscale Digital Large Cap Fund for NYSE Arca ETF Listing

July 2, 2025
Ambrook, a startup providing specialized accounting software for US farmers and ranchers, raised a .1M Series A led by Thrive Capital and Figma's Dylan Field (Allie Garfinkle/Fortune)

Ambrook, a startup providing specialized accounting software for US farmers and ranchers, raised a $26.1M Series A led by Thrive Capital and Figma's Dylan Field (Allie Garfinkle/Fortune)

July 2, 2025
Trump says Israel agrees on terms for 60-day ceasefire deal in Gaza & warns Hamas to accept as it will ‘only get worse’

Trump says Israel agrees on terms for 60-day ceasefire deal in Gaza & warns Hamas to accept as it will ‘only get worse’

July 2, 2025
SOL Sells-off As Traders Target 4

SOL Sells-off As Traders Target $124

July 1, 2025
Trump And Kristi Noem Lose It And Threaten To Criminally Prosecute CNN

Trump And Kristi Noem Lose It And Threaten To Criminally Prosecute CNN

July 2, 2025
Mexican banks face cascading consequences following US sanctions

Mexican banks face cascading consequences following US sanctions

July 1, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

SEC Clears Grayscale Digital Large Cap Fund for NYSE Arca ETF Listing

Ambrook, a startup providing specialized accounting software for US farmers and ranchers, raised a $26.1M Series A led by Thrive Capital and Figma's Dylan Field (Allie Garfinkle/Fortune)

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In