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Repealing Income Tax and Replacing it with a National Sales Tax

This bill abolishes the federal income tax, payroll taxes, and estate taxes, replacing them with a national sales tax on the consumption of goods and services. You will take home your full paycheck without deductions but will pay tax on purchases, offset by a monthly cash rebate designed to cover taxes on spending up to the poverty level.
Key points
Repeal of federal income, payroll, estate, and gift taxes, allowing workers to keep their full paychecks.
Implementation of a national sales tax rate of 23% for the year 2027 (combined rate for subsequent years).
Provision of a monthly 'Family Consumption Allowance' rebate to cover the sales tax on spending up to the poverty line.
Abolition of the Internal Revenue Service (IRS) and transfer of tax administration primarily to the States.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_25
Sponsor: Rep. Carter, Earl L. "Buddy" [R-GA-1]
Process start date: 2025-01-03
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

FairTax Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_25.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-01-03.

What are the main provisions?

Key points include:

  • Repeal of federal income, payroll, estate, and gift taxes, allowing workers to keep their full paychecks.
  • Implementation of a national sales tax rate of 23% for the year 2027 (combined rate for subsequent years).
  • Provision of a monthly 'Family Consumption Allowance' rebate to cover the sales tax on spending up to the poverty line.
  • Abolition of the Internal Revenue Service (IRS) and transfer of tax administration primarily to the States.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Carter, Earl L. "Buddy" [R-GA-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-19.

CATEGORIES

Taxes Economy Family