H.R.25 - Fair Tax Act of 2009

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. view all titles (2)

All Bill Titles

  • Short: Fair Tax Act of 2009 as introduced.
  • Official: 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. as introduced.

Bill’s Views

  • Today: 2
  • Past Seven Days: 25
  • All-Time: 280,978
 
Introduced
 
House
Passes
 
Senate
Passes
 
President
Signs
 

 
01/05/09
 
 
 
 
 
 
 

OpenCongress Summary

Resurfacing for the 6th consecutive congressional session, this bill strives to repeal the income tax, employment tax, and estate and gift tax, and to replace them with a national sales tax at a rate of 23%. It sets forth provisions for the states’ collection of sales tax revenues and the Treasury’s handling of the remittances of such revenues while setting up two new tax bureaus in the Department of Treasury in the place of the IRS.
OpenCongress bill summaries are written by OpenCongress editors and are entirely independent of Congress and the federal government. For the summary provided by Congress itself, via the Congressional Research Service, see the "Official Summary" below.

Official Summary

1/6/2009--Introduced.Fair Tax Act of 2009 - Repeals the income tax, employment tax, and estate and gift tax. Redesignates the Internal Revenue Code of 1986 as the Internal Revenue Code of 2009.Imposes a national sales tax on the use or consumption in the United States of taxable property o

Official Summary

1/6/2009--Introduced.Fair Tax Act of 2009 - Repeals the income tax, employment tax, and estate and gift tax. Redesignates the Internal Revenue Code of 1986 as the Internal Revenue Code of 2009.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 2011, 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 meeting certain size and income requirements.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 FY2013. 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.

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Organizations Supporting H.R.25

  • Americans for Fair Taxation
  • National Taxpayers Union
  • National Small Business Association

Organizations Opposing H.R.25

  • None via MapLight at this time.


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