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United States · Bill · HR

H.R. 25 (117th)

FairTax Act of 2021

referredUnited States· United States Congress· EN

Introduced

4 January 2021

Last action

4 January 2021 · Introduced

Status

Referred to the House Committee on Ways and Means.

Sponsors

Rep. Carter, Earl L. "Buddy" [R-GA-1], Jody Hice, Matt Gaetz, Jeff Duncan, Rep. Walberg, Tim [R-MI-5], Bill Posey, Markwayne Mullin, Mo Brooks, Warren Davidson, Virginia Foxx, STEVE CHABOT, Barry Loudermilk, Barry Moore, Andrew Clyde, Rep. Cammack, Kat [R-FL-3], Michael Waltz, Rep. Rutherford, John H. [R-FL-5], Frank Lucas, Gary Palmer, Thomas Massie, Jim Banks, Rep. Bilirakis, Gus M. [R-FL-12], John Carter, DON YOUNG, Robert Wittman, Scott DesJarlais, Byron Donalds, Tom Emmer, Andy Biggs, Ralph Norman, Bob Good

Subjects

Rule of law, Taxation

Source updated

3 January 2025

Rule of law · Taxation

Official sourceDownload fileView documentsShare

Summary

FairTax Act of 2021 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 2023, 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 responsibility for administering, collecting, and remitting the sales tax to the Treasury. Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund. No funding is authorized for the operations of the Internal Revenue Service after FY2025. Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

  1. 4 January 2021

    Introduced

    Referred to the House Committee on Ways and Means.

    Source: IntroReferral

  2. 4 January 2021

    Introduced

    Introduced in House

    Source: IntroReferral

  3. 4 January 2021

    Introduced

    Introduced in House

    Source: IntroReferral

Votes

No vote records are attached yet.

Versions

Documents

3 official files

Introduced in House (text)

View fileDownload file

Sponsors

Related records

Sources

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