U.S. taxation: Concerns about IRS and the reintroduction of the Fair Tax Act

From August 1862, U.S. taxation was under the control of the IRS(Internal Revenue Service). The IRS is the government agency in the department of the Treasury and is responsible for the collection of taxes. Furthermore, the IRS enforces the tax laws and handles various ranges of taxes starting from income, employment, gift, and so on. In August of 2022, the IRA(Inflation Reduction Act) was signed by the president, and the taxation of the U.S. also reached another phase with the control of the IRS. However, in 2023, the Fair Tax Act was reintroduced by the Republicans and is supported by a number of people in America. With the reintroduction of the Fair Tax Act, Republicans are claiming the abolishment of the IRS.
16th of August in 2022, Joe Biden signed the IRA(Inflation Reduction Act) to fight the climate crisis, activate domestic energy production, and fight inflation. IRA implies the tax loophole will be closed and the tax codes will be enforced. IRA went into effect under the superintendent of the IRS(Internal Revenue Service). While the Senate approved $80 billion in IRS funding, it is confirmed that the $45.6 billion was to be used in “enforcement”. It was questioned that the “Walmart shoppers'' can be targeted for the audit. Republicans have claimed that the great burden for the audit will be moved on to the “low-income taxpayer” Meanwhile, the Democrats have claimed that the GOP shows skepticism of the Republicans view and the GOP is being “hyperbolic”.
In addition to the concern of “enforcement”, questions are rising about the IRS, and the funded $80 billion to the IRS for 10 years. Doubts are cast about Joe Biden’s determination of IRA policy, as the “IRA had a backlog of 10.2 million unprocessed individual returns.” The concerns are growing bigger over time and were questioned if the IRA be repealed or strengthened. Joe Biden has desired 8,700 new IRS agents to be hired, and the new House with a Republican House speaker has passed a bill to cancel it.
Above all those doubts and questions about the IRS, the GOP have claimed the Fair Tax Act. The Fair Tax Act implies a whole different thing. Replacing the U.S. income tax with a 23% sales tax is what the Fair Tax plans. Republicans emphasize, by collecting all the sales tax, there will be less stress in preparation for taxation every year, and most importantly, the IRS will no longer be needed. Abolishment of the IRS will save government finance spent on the IRS, and the decentralization of the IRS will facilitate taxation in the U.S.The Fair Tax was reintroduced at certain times since 1999 but has arisen with the new Republican-controlled House, and concerns of the IRS. The disadvantage of the Fair Tax plan does exist, for instance, senior citizens who spent their whole life paying income taxes will have to pay much higher taxes regardless of their current income.
Confrontations of opinions between Republicans and Democrats have always existed. The new House with the new Republican speaker Mccarthy, had an impact on a lot of rivalries, and taxation was one of the sorts. Many other clashes are expected: the Republicans and the Democrats, which emerge as dissensus between the new Republican-controlled House and president Joe Biden.