A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and replacing such taxes with a national sales tax and a business tax.
Latest action · Oct 26, 2005 Read twice and referred to the Committee on Finance.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedOct 26, 2005
- Passed SenateNot reached
- Passed HouseNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
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.
Cosponsors 1
Members who signed on, in the order they did. All signed on Oct 26, 2005.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| R-SC | Lindsey Graham | Original | Oct 26, 2005 |
Committees 1
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| Senate | Finance Committee | Referred Oct 26, 2005 |
Actions 2
Everything that happened, newest first.
- Oct 26, 2005Introduced in Senate
- Oct 26, 2005Read twice and referred to the Committee on Finance.
Related bills 2
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HR 25 | Fair Tax Act of 2005 | Related bill | Nov 1, 2005 |
| S 25 | Fair Tax Act of 2005 | Related bill | Jan 24, 2005 |
Titles 2
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and replacing such taxes with a national sales tax and a business tax.
- Short Titles as Introduced for portions of this bill
- Savings for Working Families Act of 2005
Subjects
Assigned by the Library of Congress. Policy area: Taxation.
- Accounting
- Campaign funds
- Capital
- Capital gains tax
- College costs
- Commerce
- Corporation taxes
- Customs administration
- Department of the Treasury
- Economics and Public Finance
- Education
- Estate tax
- Executive reorganization
- Families
- Finance and Financial Sector
- Foreign Trade and International Finance
- Gift tax
- Government Operations and Politics
- Government trust funds
- Higher education
- Home ownership
- Housing and Community Development
- Housing finance
- Imports
- Income tax
- Inheritance tax
- Internal Revenue Service (IRS)
- Minimum tax
- Poverty
- Presidential elections
- Profit
- Sales tax
- Saving and investment
- Social Welfare
- Tax administration
- Tax credits
- Tax deductions
- Tax penalties
- Tax rates
- Tax refunds
- Tax simplification
- Tax-exempt organizations
- Taxation
- Taxpayers
Text 1
Each version as it was printed, newest first.
- Oct 26, 2005Introduced in Senate
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.