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Bill > HR25


US HR25

US HR25
FairTax Act of 2021


summary

Introduced
01/04/2021
In Committee
01/04/2021
Crossed Over
Passed
Dead
01/03/2023

Introduced Session

117th Congress

Bill Summary

A BILL 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.

AI Summary

This bill, the FairTax Act of 2021: - Repeals the federal income tax, payroll taxes, and estate and gift taxes. - Enacts a national sales tax of 23% in 2023, with the rate adjusted in subsequent years to fund Social Security, Medicare, and general government revenues. - Provides a monthly sales tax rebate to qualified families to offset the impact of the sales tax on essential purchases. - Allows states to administer the national sales tax and keep a small percentage of collections as an administrative fee. - Includes provisions for transitioning away from the current tax system, allocating sales tax revenue to Social Security and Medicare, and addressing other implementation details. The bill is intended to promote economic growth and fairness by eliminating the current income tax system in favor of a consumption-based national sales tax. The key aims are to increase investment, enhance international competitiveness, and simplify tax administration.

Committee Categories

Budget and Finance

Sponsors (31)

Last Action

Referred to the House Committee on Ways and Means. (on 01/04/2021)

bill text


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