FairTax Act of 2023
Latest action · Jan 9, 2023 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 9, 2023
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
FairTax Act of 2023
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 2025, 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 FY2027.
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terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.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 26
Members who signed on, in the order they did. Signatures ran from Jan 9, 2023 to Apr 17, 2023; 11 are original cosponsors, there from the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| R-GA | Andrew S. Clyde | Original | Jan 9, 2023 |
| R-GA | Barry Loudermilk | Original | Jan 9, 2023 |
| R-FL | Bill Posey | Original | Jan 9, 2023 |
| R-VA | Bob Good | Original | Jan 9, 2023 |
| R-AL | Gary J. Palmer | Original | Jan 9, 2023 |
| R-SC | Jeff Duncan | Original | Jan 9, 2023 |
| R-IN | Jim Banks | Original | Jan 9, 2023 |
| R-FL | Kat Cammack | Original | Jan 9, 2023 |
| R-SC | Ralph Norman | Original | Jan 9, 2023 |
| R-PA | Scott Perry | Original | Jan 9, 2023 |
| R-KY | Thomas Massie | Original | Jan 9, 2023 |
| R-FL | Byron Donalds | Jan 11, 2023 | |
| R-FL | Gus M. Bilirakis | Jan 11, 2023 | |
| R-FL | John H. Rutherford | Jan 11, 2023 | |
| R-TX | John R. Carter | Jan 11, 2023 | |
| R-GA | Marjorie Taylor Greene | Jan 11, 2023 | |
| R-FL | Matt Gaetz | Jan 11, 2023 | |
| R-OH | Warren Davidson | Jan 11, 2023 | |
| R-AL | Barry Moore | Jan 13, 2023 | |
| R-MO | Eric Burlison | Jan 13, 2023 | |
| R-GA | Mike Collins | Jan 13, 2023 | |
| R-MI | Tim Walberg | Jan 24, 2023 | |
| R-NC | Virginia Foxx | Jan 27, 2023 | |
| R-AZ | Andy Biggs | Feb 6, 2023 | |
| R-AL | Dale W. Strong | Mar 27, 2023 | |
| R-NY | George Santos | Apr 17, 2023 |
Withdrew 2 Blake D. Moore R-UT Jan 24, 2023·W. Gregory Steube R-FL May 31, 2023
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 9, 2023 |
Actions 2
Everything that happened, newest first.
- Jan 9, 2023Introduced in House
- Jan 9, 2023Referred to the House Committee on Ways and Means.
In the Congressional Record 7
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 |
|---|---|---|---|
| House | Debate and remarks H1790–H1795 | Andrew S. Clyde R-GA, Andy Biggs R-AZ, Barry Moore R-AL, Bob Good R-VA, Earl L. "Buddy" Carter R-GA, George Santos R-NY, Mike Collins R-GA | Apr 18, 2023 |
| House | Debate and remarks H804 | Andrea Salinas D-OR | Feb 9, 2023 |
| House · Senate | Debate and remarks H520, S157–S159 | Richard J. Durbin D-IL, Sylvia R. Garcia D-TX | Jan 31, 2023 |
| House | Debate and remarks H506 | Donald M. Payne, Jr. D-NJ | Jan 30, 2023 |
| Senate | Debate and remarks S106 | Charles E. Schumer D-NY | Jan 26, 2023 |
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
The sponsor’s statement, as printed in the Congressional Record, vol. 169, no. 7, January 9, 2023, page H108.
Printed hearings 1
Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.
| Number | Hearing | Committee | Held |
|---|---|---|---|
| — | MEMBER DAY231 pages | Ways and Means Committee | Sep 14, 2023 |
CRS reports 1
Congressional Research Service work that CRS links to this bill or the law it became, newest first.
Cite it 1
Products on other subjects that cite it, usually among other measures.
| Product | Title | Kind | Published |
|---|---|---|---|
| R44342 | Consumption Taxes: An Overview | Report | Jan 24, 2023 |
Related bills 1
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HR 25 | FairTax Act of 2021 | Reintroduction of | Jan 4, 2021 |
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 2023
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
- 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 9, 2023Introduced 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; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.
