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H.R. 25 119th Congress House

FairTax Act of 2025

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: January 3, 2025 Introduced by: Earl L. "Buddy" Carter Republican · Georgia 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 hobbiesGovernment information and archivesGovernment trust fundsIncome tax creditsIncome tax deductionsIncome tax ratesInterest, dividends, interest ratesIntergovernmental relationsInternal Revenue Service (IRS)MedicarePoverty and welfare assistanceSales and excise taxesSmall businessSocial security and elderly assistanceState and local government operationsState and local taxationTax administration and collection, taxpayersTax reform and tax simplificationTaxation of foreign incomeTransfer and inheritance taxes
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 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Jan 3, 2025
Referred to the House Committee on Ways and Means.
Jan 3, 2025
Introduced in House
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What's happening now January 3, 2025

Referred to the House Committee on Ways and Means.

 Plain-English summary Congressional Research Service

FairTax Act of 2025

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
  • hospital insurance rate. 

The bill includes exemptions for property or services purchased for business, investment, and certain state government functions.

Registered, qualified families may receive a monthly sales tax rebate in the amount of the monthly federal poverty level (or twice such amount for married individuals) multiplied by the federal sales tax rate. Each family member must have a Social Security number and be a lawful resident of the United States. 

Federal sales tax revenues are allocated to general revenue, the Social Security trust funds, and the Medicare trust funds. (Special allocation rules apply for 2027.)

The bill eliminates appropriations for the Internal Revenue Service after FY2029 and establishes an Excise Tax Bureau and a Sales Tax Bureau within the Department of the Treasury. 

Finally, the bill terminates the federal sales tax if the Sixteenth Amendment to the Constitution (authorizing a federal income tax) is not repealed within seven years from the date the bill is enacted.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Lobbying activity 11

Registered lobbyists who named this bill in their disclosure filings. Source: federal Lobbying Disclosure Act filings.

Bodies those filers lobbied

A filing lists the bills it worked on and the parts of government it contacted in separate sections, so these are the bodies those filers named anywhere in the filing, not a per-bill breakdown.

See all 11 filings →
 Cosponsors 14
All 14 Republican 14
R
Moore, Barry
Alabama · Mar 31, 2025
 R
Collins, Mike
Georgia · Feb 14, 2025
 R
Harris, Mark
North Carolina · Feb 4, 2025
 R
Harris, Andy
Maryland · Jan 7, 2025
 R
Loudermilk, Barry
Georgia · Jan 6, 2025
 R
Biggs, Andy
Arizona · Jan 3, 2025
 R
Burlison, Eric
Missouri · Jan 3, 2025
 R
Carter, John R.
Texas · Jan 3, 2025
 R
Clyde, Andrew S.
Georgia · Jan 3, 2025
 R
Davidson, Warren
Ohio · Jan 3, 2025
 R
McCormick, Richard
Georgia · Jan 3, 2025
 R
Perry, Scott
Pennsylvania · Jan 3, 2025
 R
Rutherford, John H.
Florida · Jan 3, 2025
 R
Strong, Dale W.
Alabama · Jan 3, 2025
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 25: FairTax Act of 2025. 119th Congress. Open America. https://openamerica.io/bill/119-HR-25/
MLA
"H.R. 25: FairTax Act of 2025." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-HR-25/.
Bluebook (legal)
H.R. 25, 119th Cong. (2026), https://openamerica.io/bill/119-HR-25/.
Markdown link
[H.R. 25: FairTax Act of 2025](https://openamerica.io/bill/119-HR-25/)
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