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Congress just introduced a bill that would abolish the IRS and our national income tax and instead replace it with a national consumption tax so in this video were going to look at what a change from an income tax system to a consumption tax system would look like how it would go into effect the pros and cons of each type of Taxation and of course who has the most to gain and to lose with the potential switch be sure to hit the like button on this video its the only sure way to avoid an IRS audit and now lets first quickly take a look at how our current income tax system works income tax as you might be able to guess means that were taxed on the income we earn be that from the wages we earn at a job dividends we earn from our investment or just interest we earn in our bank account and the income tax system we have in place here in the US is what they call a progressive income tax system basically what that means is the more money you make the more in taxes you pay and this is achi