beyond the basics in ethics education<\/a><\/p><\/blockquote>\nwhile the idea of eliminating the irs and simplifying the tax system may be appealing, any transition to a new system would require careful consideration of potential unintended consequences. and there are plenty.<\/span><\/span><\/span><\/p>\nthe<\/span> <\/span>fair tax <\/span><\/span>act<\/span><\/span> of 2025<\/span><\/span>, introduced by gop lawmakers, <\/span>seeks<\/span> to abolish the irs and replace income taxes with a national sales tax. proponents argue that this would simplify <\/span>the tax system, while critics contend it could disproportionately affect lower-income individuals.<\/span>\u00a0<\/span><\/span>\u00a0<\/span><\/p>\npatrick, ceo of verifyiq and co-founder and educator for tb academy, emphasizes the critical role of the irs in funding government operations. he questions the feasibility of maintaining government functions without a tax collection agency, stating, “you need money to operate a government, and if you have no mechanism for collecting revenue… there has to be a mechanism for revenue to do anything to pay people to have services, to care for a population of people.”<\/span><\/p>\nthe hosts discuss potential alternatives to the current tax system. mason, ceo of high rock accounting, proposes a transaction-based tax, suggesting, “what if we just have a tax that gets taken out of every bank transaction?” she acknowledges potential challenges, such as increased use of cash transactions to evade taxes and the need for technological infrastructure to support such a system.<\/span>?<\/span>\u00a0<\/span><\/p>\nshimamoto, founder and managing director of intraprisetechknowlogies llc and founder of the center for accounting transformation,\u00a0 introduces the idea of shifting tax collection responsibilities to state governments. while this approach could align with political movements advocating for increased state autonomy, the hosts express concerns about the readiness of state systems. mason notes, “most states are not complex enough to do that effectively in the current moment, so they would need a lot of funding to upgrade their systems.”<\/span>?<\/span>\u00a0<\/span><\/p>\nthe conversation also touches on the potential role of digital currencies and blockchain technology in tax collection. the hosts debate the feasibility of a government-issued digital currency and its implications for privacy and compliance. they recognize that while technology could streamline tax collection, it might also lead to increased efforts to circumvent the system.<\/span>?<\/span>\u00a0<\/span><\/p>\n10 key takeaways<\/span><\/b>\u00a0<\/span><\/p>\n\neliminating the irs would require a massive tax code overhaul. the u.s. tax system is too complex to function without an enforcement agency like the irs, and the code would need to be drastically simplified.<\/span>\u00a0<\/span><\/li>\nstate governments aren\u2019t prepared to handle federal tax collection. if the federal irs were disbanded and tax collection shifted to state governments, most states would lack the infrastructure and expertise to handle the process effectively.<\/span>\u00a0<\/span><\/li>\nalternative tax systems could replace the irs, but they have their own risks. potential replacements include a national sales tax (fairtax), vat (value-added tax), or bank transaction tax\u2014but each comes with complications like tax evasion, fairness concerns, and economic disruption.<\/span>\u00a0<\/span><\/li>\na transaction-based tax could change how money moves. a system where a small percentage is taken from every bank transaction was discussed, but it could drive more businesses and individuals toward cash transactions to avoid taxation.<\/span>\u00a0<\/span><\/li>\ncrypto and digital-only tax systems could be the future. the idea of a u.s. government-backed cryptocurrency for tax payments is explored, but this would require massive financial system restructuring and pose challenges for accessibility.<\/span>\u00a0<\/span><\/li>\neliminating the irs could lead to a bigger underground economy. without centralized tax enforcement, more businesses and individuals might resort to cash-only transactions or barter economies to avoid taxation.<\/span>\u00a0<\/span><\/li>\ntax evasion would likely increase without irs oversight. the lack of enforcement could lead to widespread tax evasion, underreported income, and overall reduced tax compliance, potentially increasing the federal deficit.<\/span>\u00a0<\/span><\/li>\nfull automation of tax collection could happen. if all financial transactions were digital, the tax system could become fully automated, calculating and collecting taxes in real time without audits.<\/span>\u00a0<\/span><\/li>\nremoving the irs wouldn\u2019t mean lower taxes for everyone. while some proposals advocate for lowering taxes alongside removing the irs, others warn that shifting to alternative tax structures might disproportionately impact lower-income individuals.<\/span>\u00a0<\/span><\/li>\nthe u.s. government needs a reliable revenue stream to operate, regardless of the system. whether taxes are collected at the federal, state, or transactional level, a stable and fair approach is crucial for funding essential services.<\/span>\u00a0<\/span><\/li>\n<\/ol>\n <\/p>\n","protected":false},"excerpt":{"rendered":"
the fair tax act of 2025 seeks to replace income taxes with a national sales tax.<\/strong> \n \naccounting arc<\/em><\/strong> \n<\/i><\/em>with liz mason, byron patrick, and donny shimamoto<\/i> \ncenter for accounting transformation<\/a><\/em><\/p>\n","protected":false},"author":4585,"featured_media":140355,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"on","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[4722,1362,2327,2734,3002,11,4184,2764],"tags":[4056,4066,4067,738,4065],"class_list":["post-140910","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-arc","category-featured-video","category-innovation","category-podcast","category-special","category-research","category-tax","category-video","tag-arc","tag-byron-patrick","tag-donny-shimamoto","tag-irs","tag-liz-mason"],"acf":[],"yoast_head":"\ncrypto, cash, or chaos in an irs-free america? | arc - 卡塔尔世界杯常规比赛时间<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n