House to vote on bill to abolish IRS and replace income tax with 'Fair Tax'

The Republican-led House will vote on a bill to abolish the IRS and replace the existing income tax system with a wide-reaching consumption tax.

Rep. Buddy Carter (R-GA) introduced the legislation, the Fair Tax Act, on Tuesday. Kevin McCarthy (R-CA) agreed to allow a floor vote on the legislation as part of a deal cut with the conservative House Freedom Caucus to become House speaker, Fox News reported.

The bill, which has a near zero chance of becoming law during this Congress, envisions simplifying the tax code by scrapping the income tax, payroll tax, corporate taxes, gift taxes, and the death tax altogether and replacing them with a nationwide consumption tax on goods and services. The IRS as an entity would also be killed by the legislation.

The "Fair Tax" plan is one that has been touted by conservative lawmakers for more than two decades, although it has never gained widespread acceptance within the GOP and is vehemently opposed by Democrats. The bill is in many ways the polar opposite of the Democratic legislation passed last year that infuses the IRS with funds to hire tens of thousands of more IRS workers.