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While adding the sales tax, the bill would also end federal taxes on income, payroll, estates and gifts.
The bill has limited support in the House.
Top Democrats, including Senate Majority Leader Chuck Schumer and President Joe Biden, have pledged to kill it.
A post shared on Facebook left out important details when it claimed how much taxes Republicans want to impose.
"In the month since Republicans took the House majority," the post said, they are trying to "impose a 30% tax on everything."
The post was flagged as part of Facebook’s efforts to combat false news and misinformation on its News Feed. (Read more about our partnership with Meta, which owns Facebook and Instagram.)
A House Republican introduced a bill to create a 30% federal sales tax. But it would have to overcome long odds to become law — and even if it did, it would eliminate several other taxes in the process.
Rep. Buddy Carter, R-Ga., introduced the FairTax Act on Jan. 9. It would abolish the IRS and impose a national sales tax. The bill states that the rate would be 23% in 2025, with adjustments in subsequent years.
Two important details:
The bill would not simply add a tax. It would also end federal taxes on income, payroll, estates and gifts.
Some conservatives have backed such a plan for two decades. The reason it is drawing attention this year is because House Speaker Kevin McCarthy, R-Calif., agreed to hold a hearing on it, despite opposing it.
Because the post contains only an element of truth, ignoring critical facts that would give a different impression, we rate it Mostly False.
Congress.gov, "H.R.25 - FairTax Act of 2023," accessed Feb. 9, 2023
Snopes, "Is GOP Freedom Caucus Pushing for a 30% Sales Tax in US?", Jan. 20, 2023
Atlanta Journal-Constitution, "Buddy Carter’s national sales tax bill draws spotlight, derision," Jan. 26, 2023
Washington Examiner, "McCarthy knocks bill to abolish IRS he promised GOP rebels a hearing on,", Jan. 25, 2023
PolitiFact, "Misleading Putnam ad twists DeSantis stance on taxes," July 27, 2018
FactCheck.org, "Democrats misleadingly suggest widespread GOP support for FairTax bill unlikely to become law," Jan. 30, 2023
White House, "Remarks by President Biden on the economy and efforts to tackle inflation," Jan. 12, 2023
Tax Policy Center, "Here Comes The FairTax … Again," Jan. 12, 2023
Institute on Taxation and Economic Policy, "Fair Tax" Plan Would Abolish the IRS and Shift Federal Taxes from the Wealthy to the Rest of Us," Jan. 11, 2023
Email, Jon Whiten, spokesperson, Institute on Taxation and Economic Policy, Feb. 6, 2023
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