HR 25 113th Congress House

Fair Tax Act of 2013

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

Introduced: January 3, 2013 See on congress.gov

Taxation Administrative law and regulatory proceduresConstitution and constitutional amendmentsDepartment of the TreasuryEmployment taxes

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Executive agency funding and structureForeign and international corporationsFraud offenses and financial crimesGamblingGames and hobbiesGeneral taxation mattersGovernment information and archivesGovernment trust fundsIncome tax creditsInterest, dividends, interest ratesIntergovernmental relationsInternal Revenue Service (IRS)MedicarePoverty and welfare assistanceSales and excise taxesSmall businessSocial security and elderly assistanceState and local government operationsTax administration and collection, taxpayersTax reform and tax simplificationTaxation of foreign incomeTransfer and inheritance taxes

Everywhere this bill has been 2 steps

Introduced

In committee

Reported out

Passed House

Passed Senate

To President

Became law

Jan 3, 2013

Introduced in House

Jan 3, 2013

Referred to the House Committee on Ways and Means.

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Latest action January 3, 2013

Referred to the House Committee on Ways and Means.

Plain-English summary Congressional Research Service

Fair Tax Act of 2013 - Repeals the income tax, employment tax, and estate and gift tax. Redesignates the Internal Revenue Code of 1986 as the Internal Revenue Code of 2013.

Imposes a national sales tax on the use or consumption in the United States of taxable property or services. Sets the sales tax rate at 23% in 2015, with adjustments to the rate in subsequent years. Allows exemptions from the tax for property or services purchased for business, export, or investment purposes, and for state government functions.

Sets forth rules relating to: (1) the collection and remittance of the sales tax, and (2) credits and refunds. Allows a monthly sales tax rebate for families based upon criteria related to family size and poverty guidelines.

Grants states the primary authority for the collection of sales tax revenues and the remittance of such revenues to the Treasury. Sets forth administrative provisions relating to: (1) the filing of monthly reports and payments of tax; (2) accounting methods; (3) registration of sellers of goods and services responsible for reporting sales; (4) penalties for noncompliance; and (5) collections, appeals, and taxpayer rights.

Directs the Secretary of the Treasury to allocate sales tax revenues 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.

Prohibits the funding of the Internal Revenue Service (IRS) after FY2017. Establishes in the Department of the Treasury: (1) an Excise Tax Bureau to administer excise taxes not administered by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and (2) a Sales Tax Bureau to administer the national sales tax.

Terminates the sales tax imposed by this Act if the Sixteenth Amendment to the U.S. Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this Act.

Bill text 1 version