In Tuesday night’s State of the Union address President Obama is expected to call for an increase in taxes for the wealthiest Americans.
But in Washington, Georgia senators Johnny Isakson and David Perdue are proposing a Fair Tax Act that would repeal all federal personal income taxes, corporate income taxes, payroll taxes, self-employment taxes, capital gains taxes and gift and estate taxes.
They say those taxes would be replaced with a revenue-neutral, personal consumption tax on all retail sales of new goods and services. Isakson told GPB's On Second Thought on Tuesday he is optimistic about the bill's chances.
"I'm on the finance committee. The finance committee is beginning the process of looking at a corporate tax reform proposal,” Isakson said. “And once you put any reform proposal on the table all proposals for reform are out there. So I think it will get a vigorous debate in this session of Congress."
Isakson says he believes the current tax code punishes hard work and productivity.
He also says President Obama should consider Georgia’s model when it comes to offering students free or low-cost options to attend college.
The president proposed offering two years of free community college to students who work for it.