Bill > HR25

This bill proposes to replace the current federal income tax system with a national sales tax, effectively eliminating income taxes, payroll taxes, and estate and gift taxes. The bill, known as the "FairTax Act of 2025," would impose a 23% sales tax on the use or consumption of goods and services in the United States, starting in 2027. Key provisions include: establishing a sales tax administering authority (primarily at the state level), providing a monthly family consumption allowance to help offset the tax burden for lower-income families, and creating a system where businesses would collect and remit the sales tax. The bill aims to simplify the tax code, reduce administrative costs, and eliminate what it sees as the intrusive nature of the current income tax system. Notably, the bill includes a sunset provision that would nullify the sales tax if the 16th Amendment (which allows for federal income taxation) is not repealed within seven years of the act's enactment. The proposed legislation would also phase out the Internal Revenue Service and transfer some of its functions to other departments within the Treasury.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/25/all-info