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HR 25 108th Congress House

Fair Tax Act of 2003

Official title: To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a nat… Show full official titleShow less

Official title: 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.

Introduced: March 31, 2003 See on congress.gov
Taxation Administrative feesAliensCommerceCost of living adjustments
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Department of the TreasuryEconomics and Public FinanceEstate taxExecutive reorganizationForeign Trade and International FinanceForeign corporationsGift taxGovernment Operations and PoliticsGovernment paperworkGovernment trust fundsHealthIncome taxInterestInternal Revenue Service (IRS)Labor and EmploymentMedicareOld age, survivors and disability insurancePayroll deductionsSales taxSocial WelfareSocial security financeTax administrationTax courtsTaxation of foreign incomeWagesWithholding tax
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This bill died when the 108th Congress ended
It never became law before the 108th Congress (2003–2004) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 3 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
May 5, 2004
Sponsor introductory remarks on measure. (CR H2556)
Jan 7, 2003
Referred to the House Committee on Ways and Means.
Jan 7, 2003
Introduced in House
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 Latest action May 5, 2004

Sponsor introductory remarks on measure. (CR H2556)

 Plain-English summary Congressional Research Service
Fair Tax Act of 2003 - Amends the Internal Revenue Code to repeal subtitle A (Income Taxes), B (Estate and Gift Taxes), and C (Employment Taxes) of the Internal Revenue Code.

Imposes a tax on the use or consumption in the United States of taxable property or services. Sets the tax rate at 23 percent for the calendar year 2005. Sets the rate, for years after 2005, at the combined sum of the general revenue rate (14.91 percent), the old-age survivors and disability rate, and the hospital insurance rate.

Sets forth provisions concerning, among other things; (1) imports and exports; (2) definitions; (3) credits and refunds; (4) a "family consumption allowance"; (5) Federal and State cooperative tax administration; (6) administrative matters; (7) collections, appeals, and taxpayer rights; (8) special rules (hobbies, gaming, government purchases, non-profits, and etc.); (9) financial intermediation services; and (10) additional matters.

Sets forth provisions concerning the: (1) phase-out of administration of repealed taxes; (2) administration of other taxes (establishes an Excise Tax Bureau and a Sales Tax Bureau); and (3) sales tax inclusive social security benefits indexation.

 Related & companion bills 1
  • S 1493 Identical bill Fair Tax Act of 2003
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Cosponsors 13
All 13 Republican 4
SMITH, NICK
· Jul 9, 2004
GOSS, PORTER
· May 11, 2004
 R
Sessions, Pete
Texas · May 11, 2004
 R
Graves, Sam
Missouri · Apr 27, 2004
THORNBERRY, WILLIAM
· Mar 11, 2004
Toomey, Patrick
· Mar 10, 2004
MCINNIS, SCOTT
· Oct 8, 2003
DeMint, James
· Sep 3, 2003
Isakson, Johnny
· Sep 3, 2003
 R
Wilson, Joe
South Carolina · May 22, 2003
Burns, Max
· Mar 31, 2003
 R
Carter, John R.
Texas · Mar 31, 2003
COLLINS, MAC
· Feb 25, 2003
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 25: Fair Tax Act of 2003. 108th Congress. Open America. https://openamerica.io/bill/108-HR-25/
MLA
"H.R. 25: Fair Tax Act of 2003." 108th Congress, 2026, Open America, https://openamerica.io/bill/108-HR-25/.
Bluebook (legal)
H.R. 25, 108th Cong. (2026), https://openamerica.io/bill/108-HR-25/.
Markdown link
[H.R. 25: Fair Tax Act of 2003](https://openamerica.io/bill/108-HR-25/)
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