[Congressional Record Volume 169, Number 64 (Tuesday, April 18, 2023)] [House] [Pages H1790-H1795] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Date: 2023-04-18
Chamber: HOUSE
Mr. CARTER : I thank the gentleman from Arizona for his insightful comments. I think we have all had that aha moment when we got our first paycheck, and we said: Wait a minute, I was supposed to make X-amount, but I am only taking home this amount. Why is that? The reason why is because you are having to pay an income tax, a payroll tax--you have to pay all these taxes. With a consumption tax, the FairTax Act, you decide. If you want to buy a boat, you are going to pay taxes. If you don't want to pay taxes, don't buy the boat. That is all there is to it. I appreciate the gentleman mentioning this about every time you buy something you are paying taxes, every time you purchase a good or a service. Under the FairTax Act you are only paying for your goods or services. You are only paying your tax, not someone else's. There is no other tax proposal--serious tax proposal--that would overhaul the largest and the most regressive tax that the majority of Americans pay, the payroll tax, while making the United States the most competitive place in the world to do business.  {time}  1800  It honestly baffles me that my friends on the other side of the aislehaven't embraced this proposal with open arms because it will save taxpayers time, money, and headaches while ensuring that those with more money to spend, AKA the wealthy, pay more taxes. After all, when they buy a boat, it is a big boat--usually a yacht--and the taxes on the yacht are a lot bigger. Now, I am going to buy a jon boat. Taxes aren't going to be as much on it. But they buy yachts, and the taxes are high on that. So they are going to pay their fair share. That is one of the criticisms I always hear: Oh, the wealthy don't pay their part. Let me tell you, Mr. Speaker, they consume a lot more. Who is going to benefit the most from this? The people making between $30,000 and $50,000 a year. Those are the people who are going to benefit from this. Those are the people whom I am talking about here. Under this proposal, every legal American family will receive a prebate, as was mentioned, on their taxes up to the national poverty level. So, Mr. Speaker, don't tell me this about: Oh, this is going to penalize the very least money earners. No. That is not the case at all because the prebate is going to take care of that. This means that a family of four can spend $30,000 a year without paying a penny--without paying a penny--in taxes. That is an effective tax rate of zero. Close your eyes, Mr. Speaker. That is how much it is: zero. No matter how you slice it, this bill is a much better deal for middle- and low-income earners than it is for those at the top. That is what I don't understand, Mr. Speaker, from those on the other side of the aisle who are always saying: Oh, the rich don't pay their fair share. This is why we have the FairTax Act. This is why we have a consumption tax, so they will be paying their fair share. I hear this about: Oh, the illegals here don't pay taxes. If they are going to buy something here, then they are going to be paying taxes now. They are going to be paying the fair tax. We will be able to capture that underground economy, if you will. As distasteful as it may be, the pimps and the prostitutes are going to be paying taxes because they consume. They go out, and they buy groceries. They go out, and they buy stuff. That is what you are going to be paying the taxes on. No matter how you slice it, Mr. Speaker, this bill is a much better deal for middle- and low-income earners than it is for those on the top. The FairTax Act provides freedom to choose when you pay your taxes, Mr. Speaker, and how much you spend. You are in control. Don't let Washington, D.C., decide how much you are going to pay in taxes. You decide. That is why the administration and that is why those on the other side of the aisle don't like it. It is because they lose control of you, and you have control, Mr. Speaker. Instead of taking money from every single dollar you earn, you are only paying taxes on the money you spend, leaving more room for paying down debt, retirement, college, savings, and more. All of us speaking in support of this legislation today know that this is a big idea. It is a big idea. It is a big change. Although, as Mr. Biggs mentioned, there are nine States that do it. Oh, by the way, Florida, Texas, and Tennessee don't have an income tax. They are doing fine. Some of the strongest economies in the world are right there, and they are doing fine. We know that overturning an entrenched Tax Code with thousands of special interests invested in keeping their carve-outs poses significant challenge. It does pose a significant challenge. But we didn't come to Congress to maintain the status quo--at least that is not why I came here. I thought we were here for big ideas. This is a big idea. For those who are just turning it off saying: Oh, no. I remind them that a closed mind is a dead mind. You have got to have an open mind with this, Mr. Speaker. That is why this is so good. The only people with something to lose are those who gain their power and money on the back of this convoluted, broken system. There are those who know how to play it. I know that, and you know that as well, Mr. Speaker. That is why it is time for the FairTax Act. That is why it is time to put Americans first. Mr. Speaker, I yield to the gentleman from Georgia (Mr. Clyde), who has an opinion or two about taxes. I know he does. He has had an experience with taxes too, like many of us have.