Congressman Proposes Abolishing the IRS
Date: 2025-01-15 Author: Oliver Abernathy Categories: IN WORLD
This comes shortly after the IRS was sued by the Blockchain Association over new reporting rules.
H.R. 25, known as the Fair Tax Act of 2025, was introduced by Representative Earl “Buddy” Carter (R-GA). The bill challenges the current U.S. tax code, promoting ideas of freedom, fairness, and economic development. The bill proposes eliminating taxes on income, wages, inheritance, and gift, replacing them with a national sales tax.
According to the bill, the federal income tax is holding back economic growth, reducing U.S. competitiveness on the global stage, and worsening the standard of living for Americans. Carter also focuses on the administrative and financial costs of the current system, privacy concerns, and lack of transparency.
The proposed consumption tax would apply to goods and services purchased for final use, eliminating double taxation. The proponents believe that this approach will increase savings and investment, improve the business environment, and eliminate the shortcomings of the current system.
The most radical element of the Fair Tax Act is the proposal to eliminate the IRS. According to Carter, the new tax approach eliminates the need for this service, since the tax system should be simple and transparent.
The bill was supported by several Republicans, including Barry Loudermilk, Warren Davidson, and Andy Biggs. One of the co-sponsors, Congressman Dale Strong, emphasized that the proposed system would ensure a fair tax burden for everyone, including illegal immigrants.
The IRS has faced criticism from cryptocurrency organizations after introducing new reporting rules on December 28, 2024. Among the plaintiffs are the Blockchain Association, the Texas Blockchain Council, and the DeFi Education Fund. The new rules require DeFi platforms to provide transaction information by 2027, defining them as brokers.
The plaintiffs argue that DeFi platforms are not brokers because they operate without intermediaries. They believe that the rules violate the Constitution and threaten the US leadership in the crypto industry. If the changes come into force, many companies may leave the country in search of more favorable jurisdictions.
Abolishing the IRS could end the pressure on the DeFi sector, but the prospects for the Fair Tax Act of 2025 remain uncertain. The bill was first proposed back in 1999. Will 2025 be a breakthrough year? Time will tell.
