Tennessee House Bill HJR0017

Tennessee 2025-2026 Regular Session

• Introduced: 1/2/25
• Refer: 1/14/25
• Refer: 2/26/25
• Refer: 3/4/25
• Engrossed: 3/13/25
• Enrolled: 4/17/25
• Passed: 4/24/25

Caption

A RESOLUTION to urge the United States Congress to repeal all taxes on income and enact a national retail sales tax as specified in H.R. 25, the Fair Tax Act of 2023.

Impact

The proposed shift to a national retail sales tax could considerably alter state and federal tax structures. It would eliminate various taxes such as the personal income tax, capital gains tax, and payroll taxes, replacing them with a single consumption tax. Furthermore, the resolution cites Tennessee as a successful model, having operated without a personal income tax for years, attributing this to an increased business influx and job creation. Such arguments highlight a desire for a less intrusive tax system that could potentially simplify compliance and promote economic activity.

Summary

HJR0017, proposed by Representative McCalmon, is a resolution urging the United States Congress to repeal all forms of income tax and to enact a national retail sales tax as prescribed by H.R. 25, known as the Fair Tax Act of 2023. The resolution argues that the current income tax system burdens citizens with complicated tax returns, penalizes marriage, and detracts from economic growth, proposing that a consumption-based tax system would reduce administrative burdens and promote fairness and economic growth. It suggests that such a system would better respect civil rights and encourage upward social mobility, in contrast to the perceived downsides of income taxes.

Contention

Notable points of contention surrounding HJR0017 include the implications of completely removing income taxes, which some may argue could undermine vital public services that income taxes help fund. The resolution comments on the fairness of a national retail sales tax, especially regarding its impacts on lower-income citizens who spend a larger portion of their income on consumption. Critics may contend that while the intent is to increase simplicity and fairness, the reality of shifting taxation away from income may inadvertently lead to greater economic inequality.