118th Congress · HOUSE BILLBILL

H.R. 25 — FairTax Act of 2023

“To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States.”

Taxation

Introduced Jan 9, 2023

Last action Jan 9, 2023

Pipeline · Bill → Law

Step 1

Introduced

Jan 9, 2023

Step 2

Referred

Jan 9, 2023

Ways & Means

Step 3

Committee

Step 4

House floor

Step 5

Senate

Step 6

Resolve Changes

Step 7

Signed

SummaryCRS Summary

This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2025, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions. Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines. The states have the respo...

Provisions · 12 sectionsIntroduced in House

4 provisions

2 provisions

3 provisions

1 provision

Timeline · 2 actions

Jan 9, 2023

Introduced in House

Jan 9, 2023

Referred to the House Committee on Ways and Means.