FairTax Act of 2021
Latest action · Jan 4, 2021 Referred to the House Committee on Ways and Means.
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 4, 2021
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
FairTax Act of 2021
This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2023, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions.
Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines.
The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury.
Tax revenues are to be allocated 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.
No funding is authorized for the operations of the Internal Revenue Service after FY2025.
Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.
Cosponsors 30
Members who signed on, in the order they did. Signatures ran from Jan 25, 2021 to Sep 19, 2022.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| R-GA | Barry Loudermilk | Jan 25, 2021 | |
| R-FL | Bill Posey | Jan 25, 2021 | |
| R-SC | Jeff Duncan | Jan 25, 2021 | |
| R-GA | Jody B. Hice | Jan 25, 2021 | |
| R-OK | Markwayne Mullin | Jan 25, 2021 | |
| R-FL | Matt Gaetz | Jan 25, 2021 | |
| R-AL | Mo Brooks | Jan 25, 2021 | |
| R-OH | Steve Chabot | Jan 25, 2021 | |
| R-MI | Tim Walberg | Jan 25, 2021 | |
| R-NC | Virginia Foxx | Jan 25, 2021 | |
| R-OH | Warren Davidson | Jan 25, 2021 | |
| R-GA | Andrew S. Clyde | Feb 2, 2021 | |
| R-AL | Barry Moore | Feb 2, 2021 | |
| R-FL | Kat Cammack | Feb 2, 2021 | |
| R-FL | Michael Waltz | Feb 2, 2021 |
Actions 2
Everything that happened, newest first.
- Jan 4, 2021Introduced in House
- Jan 4, 2021Referred to the House Committee on Ways and Means.
Subjects
Assigned by the Library of Congress. Policy area: Taxation.
- Administrative law and regulatory procedures
- Constitution and constitutional amendments
- Department of the Treasury
- Employment taxes
- Executive agency funding and structure
- Foreign and international corporations
- Fraud offenses and financial crimes
- Gambling
- Games and hobbies
- General taxation matters
- Government information and archives
- Government trust funds
- Income tax credits
- Income tax deductions
- Income tax rates
- Interest, dividends, interest rates
- Intergovernmental relations
- Internal Revenue Service (IRS)
- Medicare
- Poverty and welfare assistance
- Sales and excise taxes
- Small business
- Social security and elderly assistance
- State and local government operations
- State and local taxation
- Tax administration and collection, taxpayers
- Tax reform and tax simplification
- Taxation
- Taxation of foreign income
- Transfer and inheritance taxes
Text 1
Each version as it was printed, newest first.
- Jan 4, 2021Introduced in House
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.