News & Politics

Rep Devin Nunes on GOP Tax Plan: 'We're Getting Rid of the Income Tax'

The Republican plan to overhaul the tax system includes getting rid of the income tax, Rep. Devin Nunes (R-CA) announced on Fox Business Tuesday morning.

“We’re trying to fundamentally change the code,” Nunes told host Stuart Varney. “We’re getting rid of the income tax. We’re doing something that hasn’t been done in 100 years.”

“We’re moving to a consumption system — to a cash flow system,” Nunes said. He explained what that would look like in practice: “You take your income minus your expenses, and whatever’s left over, you pay a tax on that.”

He added that “this is a very simple system, yet it’s a dramatic departure from the confusing tax code that we have now.”

Nunes argued that the changes would increase economic growth and bring jobs back to America so we can be “the most transparent, business-friendly nation state in the world.”

He said that under the new system, the biggest winners would be wage earners and small businesses because “they will be on the same playing field as other businesses in this country.”

Varney began the segment by asking Nunes, the chairman of the House Permanent Select Committee on Intelligence, for his thoughts on the resignation of National Security Adviser Michael Flynn. Nunes, a longtime friend and defender of Flynn, said that there are a lot of qualified people who can take his place, but lamented that the ousted general “really is one of the greatest intelligence officers in a generation.” He also said that he is concerned that the opposition is going to continue to attack various personalities in the White House.