FairTax Act of 2025
Introduced Jan 3, 2025 by Rep. Earl L. "Buddy" Carter
It's waiting on a committee vote to reach the full chamber. Most bills never leave this stage.
This bill replaces federal income, payroll, estate, and gift taxes with a federal sales tax beginning in 2027 and eliminates the Internal Revenue Service.
The bill establishes a 23% tax-inclusive (30% tax-exclusive) federal sales tax rate on taxable property and services to be administered primarily by each state. The federal sales tax rate is adjusted annually beginning in 2028 so that it is the sum of the
general revenue rate (14.91%);
old-age, survivors and disability insurance rate; and
Read the full summary on Congress.govSummary by the Congressional Research Service.
No floor votes yet — it hasn't reached the floor of either chamber.