Repeals: (1) the income tax, including the tax on capital gains and the alternative minimum tax; (2) estate, gift, and generation-skipping transfer taxes; and (3) the Financing of Presidential Election Campaigns provisions.
Imposes a sales tax of 8.4% on the use or consumption of taxable property or services, to be administered and collected by the states. Allows certain credits against such tax for, among other things, business use conversion, export sales, bad debt, insurance proceeds, and previously taxed property. Grants a family consumption allowance for certain low-income families.
Repeals the corporate income tax and related provisions. Imposes a business tax of 8.4% of the annual gross profit on the sale of taxable property and services in the United States by a business entity. Defines "gross profits" as the taxable receipts of a business entity over the allowable deductible amounts for such entity, including the cost of business purchases and loss carryover deductions.
Sets forth rules for the taxation of income from the non-exempt business activities of governmental entities. Revises the tax treatment of charitable and other nonprofit organizations.
Imposes a tax of 8.4% of the customs value of all property brought into the United States for consumption, use, or warehousing.
Revises tax administration provisions, including registration, accounting, penalty, and taxpayer rights provisions.
Prohibits funding of the Internal Revenue Service after FY2010.
Savings for Working Families Act of 2005 - Allows certain low-income individuals to establish individual development accounts (IDAs) to accumulate assets for, among other things, higher education expenses, first-time home purchases, and business capitalization or expansion costs. Provides for federal matching funds to certain financial institutions for investment in IDAs.