118th Congress Taxation
H.R. 25: FairTax Act of 2023
Introduced
- Introduced (completed)
- Passed House (not reached)
- Passed Senate (not reached)
- To the President (not reached)
- Became law (not reached)
Summary
FairTax Act of 2023
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.
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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 FY2027.
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terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.
Written by the Congressional Research Service, Library of Congress.
Roll calls
No roll call votes have been held on this bill.
Amendments
No amendments were offered to this bill.
Cosponsors
- Jim Banks R-INOriginal
- Katherine Cammack R-FLOriginal
- Andrew Clyde R-GAOriginal
- Jeff Duncan R-SCOriginal
- Robert Good R-VAOriginal
- Barry Loudermilk R-GAOriginal
- Thomas Massie R-KYOriginal
- Ralph Norman R-SCOriginal
- Bill Posey R-FLOriginal
- Scott Perry R-PAOriginal
- Gary Palmer R-ALOriginal
- Gus Bilirakis R-FL
- John Carter R-TX
- Byron Donalds R-FL
- Warren Davidson R-OH
- Matt Gaetz R-FL
- Marjorie Greene R-GA
- Blake Moore R-UTWithdrawn Jan 24, 2023
- John Rutherford R-FL
- W. Steube R-FLWithdrawn May 31, 2023
- Eric Burlison R-MO
- Mike Collins R-GA
- Barry Moore R-AL
- Tim Walberg R-MI
- Virginia Foxx R-NC
- Andy Biggs R-AZ
- Dale Strong R-AL
- George Santos R-NY
Who scored on this bill
- 1Earl Carter SponsorIntroduced, reached a cosponsor milestone2 events+6
- 2Blake MooreCosponsored; withdrew cosponsorship2 events−10
- 2W. SteubeCosponsored; withdrew cosponsorship2 events−10
See all scorers and every scoring event
Introductions and cosponsorships count toward weekly caps and show no points.
Other bills by Earl Carter
History
- Introduced in the House by Earl Carter.
Show the full action history (2 actions)
- Introduced in House
- Referred to the House Committee on Ways and Means.