The Fair Tax of 2023: A Great Idea with a Major Flaw

The Internal Revenue Service building in Washington, D.C., on April 15, 2019. Zach Gibson/Getty Images

Commentary

Twenty-five Republican members of the House of Representatives co-sponsored a bill to radically overhaul the U.S. tax system. The Fair Tax Act of 2023 (H.R.25) proposes to eliminate all federal income taxes, replacing the revenue with a national sales tax of 23–30 percent.