HR 25 · 117th Congress 2021–2023, ended

FairTax Act of 2021

Introduced Jan 4, 2021 Originated House Sponsor Earl L. "Buddy" Carter R-GA

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terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.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
R-OK	Frank D. Lucas	Feb 11, 2021
R-FL	John H. Rutherford	Feb 11, 2021
R-AL	Gary J. Palmer	Mar 9, 2021
R-IN	Jim Banks	Mar 9, 2021
R-KY	Thomas Massie	Mar 9, 2021
R-FL	Gus M. Bilirakis	Mar 11, 2021
R-TX	John R. Carter	Apr 26, 2021
R-AK	Don Young	May 13, 2021
R-VA	Robert J. Wittman	Jul 13, 2021
R-TN	Scott DesJarlais	Jul 20, 2021
R-FL	Byron Donalds	Jul 21, 2021
R-MN	Tom Emmer	Aug 20, 2021
R-AZ	Andy Biggs	Feb 9, 2022
R-SC	Ralph Norman	Feb 25, 2022
R-VA	Bob Good	Sep 19, 2022

Committees 1

Where it was sent and what each committee and subcommittee did with it, in order.

Chamber	Committee	What it did
House	Ways and Means Committee	Referred Jan 4, 2021

Actions 2

Everything that happened, newest first.

Jan 4, 2021Introduced in House
Jan 4, 2021Referred to the House Committee on Ways and Means.

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.

Constitutional authority

Congress has the power to enact this legislation pursuant to the following: Clause l, Section of Article 1: ``The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform through out the United States.''

The sponsor’s statement, as printed in the Congressional Record, vol. 167, no. 2, January 4, 2021, page H51.

Printed hearings 2

Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.

Number	Hearing	Committee	Held
Serial No. 117-78	IRS: IS IT READY?31 pages	Oversight and Government Reform Committee	Apr 21, 2022
Serial No. 117-6	MEMBER DAY461 pages	Agriculture Committee	May 18, 2021

Related bills 1

Companion bills and other measures the record links to this one.

Bill	Title	Relationship	Latest action
HR 25	FairTax Act of 2023	Reintroduced Bill	Jan 9, 2023

Titles 2

Every title it has carried, official and short, at each stage.

Official Title as Introduced: 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 Title(s) as Introduced: FairTax Act of 2021

Subjects

Assigned by the Library of Congress. Policy area: Taxation.

Text 1

Each version as it was printed, newest first.

Jan 4, 2021Introduced in House

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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.