SALT Report 2899 – On August 23, 2013, the Florida State Legislature introduced a Bill that urges Congress to repeal all taxes on income and create a national retail sales tax. Specifically, Senate Bill 118 requests that Congress enact H.R. 25, the Fair Tax Act of 2013.
Under the provisions of the ACT, the State would eliminate the personal income tax, the alternative minimum tax, the inheritance tax, the gift tax, the capital gains tax, the corporate income tax, the self-employment tax, and the employee and employer payroll tax and replace them with a national retail sales tax on the use or consumption of taxable property or services.
The sales tax rate would be set at 23% in 2015, with adjustments to the rate allowed in subsequent years. Additionally, the ACT provides tax exemptions for property or services purchased for business, export, or investment purposes, and for state government functions.
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