Biden Administration Opposes House GOP Tax Bill, Vows to Veto

• The Biden Administration recently opposed House Republicans’ legislation, the “Family and Small Business Taxpayer Protection Act” (H.R. 25), which proposes the elimination of the IRS and the implementation of a “Fair Tax” and national consumption tax.

• Speaker of the House, Kevin McCarthy, has requested Congress to reduce the funding granted to the Internal Revenue Service (IRS) in the previous year.

• The Biden Administration argues that the bill will increase the deficit by nearly $115 billion over 10 years and enable wealthy tax cheats to engage in additional tax fraud and avoidance.

The Biden Administration recently expressed their opposition to House Republicans’ legislation, the “Family and Small Business Taxpayer Protection Act” (H.R. 25), which proposes the elimination of the Internal Revenue Service (IRS) and the implementation of a “Fair Tax” and national consumption tax. Speaker of the House, Kevin McCarthy, has requested Congress to reduce the funding granted to the IRS in the previous year.

The bill, which was co-sponsored by representative Earl L. „Buddy“ Carter (R-GA), calls for a „rescission of certain funds made available to the IRS“. In a statement, Carter said, “Instead of adding 87,000 new agents to weaponize the IRS against small-business owners and middle America, this bill will eliminate the need for the department entirely by simplifying the tax code with provisions that work for the American people and encourage growth and innovation. Armed, unelected bureaucrats should not have more power over your paycheck than you do.”

The Biden Administration has argued that the bill is reckless, and would increase the deficit by nearly $115 billion over 10 years per an estimate by the Congressional Budget Office. Furthermore, the Administration believes that the bill would enable wealthy tax cheats to engage in additional tax fraud and avoidance.

In response to the proposed legislation, the Biden Administration has pledged to veto the bill, should it pass in the House. White House Press Secretary Jen Psaki said in a statement, “The Administration opposes House Republicans’ proposal to eliminate the Internal Revenue Service and replace it with a ‘Fair Tax’ that would be collected by each state. This legislation would increase the deficit, reduce tax compliance and accountability, and further complicate the already overly-complex tax code. The Administration is committed to an efficient and effective tax collection system and will veto any bill that proposes to eliminate the IRS.”