Fair Tax Act of 2005
Latest action · Jan 24, 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.
- IntroducedJan 24, 2005
- Passed SenateNot reached
- Passed HouseNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Fair Tax Act of 2005 - Repeals the income tax, employment tax, and estate and gift tax. Redesignates the Internal Revenue Code of 1986 as the Internal Revenue Code of 2005.
Imposes a national sales tax on the use or consumption in the United States of taxable property or services. Sets the sales tax rate at 23 percent in 2007, with adjustments to the rate in subsequent years. Allows exemptions from the tax for property or services purchased for business, export, or investment purposes and for State government functions.
Sets forth rules relating to: (1) the collection and remittance of the sales tax; and (2) credits and refunds. Allows familes a sales tax rebate.
Grants States the primary authority for the collection of sales tax revenues and the remittance of such revenues to the Treasury. Sets forth administrative provisions relating to: (1) the filing of monthly reports and payments of tax; (2) accounting methods; (3) registration of sellers of goods and services responsible for reporting sales; (4) penalties for noncompliance; and (5) collections, appeals, and taxpayer rights.
Directs the Secretary of the Treasury to allocate sales tax revenues among: (1) the general revenue; (2) the old-age and survivors insurance trust fund; (3) the disability insurance trust fund; (4) the hospital insurance trust fund; and (5) the Federal supplementary medical insurance trust fund.
Prohibits the funding of the Internal Revenue Service (IRS) after FY 2009. Establishes in the Department of the Treasury: (1) an Excise Tax Bureau to administer excise taxes not administered by the Bureau of Alcohol, Tobacco and Firearms (ATF); and (2) a Sales Tax Bureau to administer the national sales tax.
Cosponsors 3
Members who signed on, in the order they did. Signatures ran from Sep 6, 2005 to May 22, 2006.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| R-OK | Tom Coburn | Sep 6, 2005 | |
| R-TX | John Cornyn | Apr 4, 2006 | |
| R-GA | Johnny Isakson | May 22, 2006 |
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 Jan 24, 2005 |
Actions 3
Everything that happened, newest first.
- Jan 24, 2005Introduced in Senate
- Jan 24, 2005Sponsor introductory remarks on measure. (CR S215)
- Jan 24, 2005Read twice and referred to the Committee on Finance.
In the Congressional Record 1
Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.
| Where | In the Record | Members | Date |
|---|---|---|---|
| Senate | Debate and remarks S215 | Saxby Chambliss R-GA | Jan 24, 2005 |
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Printed hearings 5
Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.
| Number | Hearing | Committee | Held |
|---|---|---|---|
| S. Hrg. 109-973 | DECONSTRUCTING THE TAX CODE: UNCOLLECTED TAXES AND ISSUES OF TRANSPARENCY169 pages | Homeland Security and Governmental Affairs Committee | Sep 26, 2006 |
| Serial No. 109-88 | MEMBER PROPOSALS ON TAX ISSUES INTRODUCED IN THE 109TH CONGRESS77 pages | Ways and Means Committee | Sep 26, 2006 |
| Serial No. 109-82 | HEARING ON THE IMPACT OF INTERNATIONAL TAX REFORM ON U.S. COMPETITIVENESS111 pages | Ways and Means Committee | Jun 22, 2006 |
| Serial No. 109-45 | MEMBER PROPOSALS FOR TAX REFORM115 pages | Ways and Means Committee | Jul 28, 2005 |
| Serial No. 109-23 | TAX REFORM208 pages | Ways and Means Committee | Jun 8, 2005 |
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 1921 | 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. | Related bill | Oct 26, 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 enacting a national sales tax to be administered primarily by the States.
- Short Titles as Introduced
- Fair Tax Act of 2005
Subjects
Assigned by the Library of Congress. Policy area: Taxation.
- Administrative fees
- Administrative procedure
- Administrative remedies
- Affiliated corporations
- Aliens
- Commerce
- Cost of living adjustments
- Department of the Treasury
- Economics and Public Finance
- Estate tax
- Executive reorganization
- Exports
- Families
- Finance and Financial Sector
- Financial services
- Foreign corporations
- Foreign Trade and International Finance
- Gambling
- Gift tax
- Government Operations and Politics
- Government paperwork
- Government trust funds
- Health
- Hobbies
- Immigration
- Income tax
- Insurance
- Interest
- Intergovernmental tax relations
- Internal revenue law
- Internal Revenue Service (IRS)
- Interstate compacts
- Inventories
- Labor and Employment
- Law
- Loan defaults
- Medicare
- Old age, survivors and disability insurance
- Payroll deductions
- Poverty
- Rebates
- Sales tax
- Science, Technology, Communications
- Small business
- Social security finance
- Social security taxes
- Social Welfare
- Sports and Recreation
- Tax administration
- Tax auditing
- Tax courts
- Tax credits
- Tax liens
- Tax penalties
- Tax refunds
- Tax returns
- Tax simplification
- Taxation
- Taxation of foreign income
- Taxpayer compliance
- Taxpayers
- Telephone
- Wages
- Withholding tax
Text 1
Each version as it was printed, newest first.
- Jan 24, 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.