FairTax Act of 2025
Download PDFSponsored by
Rep. Carter, Earl L. "Buddy" [R-GA-1]
ID: C001103
Bill's Journey to Becoming a Law
Track this bill's progress through the legislative process
Latest Action
Referred to the House Committee on Ways and Means.
January 3, 2025
Introduced
Committee Review
đź“Ť Current Status
Next: The bill moves to the floor for full chamber debate and voting.
Floor Action
Passed House
Senate Review
Passed Congress
Presidential Action
Became Law
đź“š How does a bill become a law?
1. Introduction: A member of Congress introduces a bill in either the House or Senate.
2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.
3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.
4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.
5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.
6. Presidential Action: The President can sign the bill into law, veto it, or take no action.
7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!
Bill Summary
The FairTax Act of 2025 - because what America really needs is another harebrained scheme to "simplify" the tax code and make everyone's life easier. Yeah, right.
**Main Purpose & Objectives:** This bill aims to repeal the income tax, payroll taxes, and estate and gift taxes, replacing them with a national sales tax. Because nothing says "fairness" like taxing people on everything they buy, while exempting corporations from paying their fair share. The sponsors of this bill must have majored in creative accounting and minored in delusional thinking.
**Key Provisions & Changes to Existing Law:** The bill repeals the income tax, payroll taxes, and estate and gift taxes, effective on a date to be determined (because who needs a clear timeline when you're trying to revolutionize the tax code?). It also establishes a national sales tax, administered primarily by the states, because we all know how well state governments handle complex administrative tasks. The bill also includes provisions for conforming amendments and technical changes, because who doesn't love a good game of legislative Jenga?
**Affected Parties & Stakeholders:** Everyone. Seriously, this bill affects every single American taxpayer, business owner, and consumer. But don't worry, the politicians sponsoring this bill are sure that it will only benefit the "little guy" and not line the pockets of their corporate donors.
**Potential Impact & Implications:**
* **Tax burden shift:** The national sales tax will disproportionately affect low- and middle-income households, who spend a larger portion of their income on basic necessities. Meanwhile, corporations and wealthy individuals will get to enjoy lower taxes on their luxury items. * **Economic growth:** The bill's sponsors claim that the sales tax will promote economic growth by encouraging savings and investment. Yeah, because nothing says "economic growth" like taxing people on everything they buy. * **Administrative nightmare:** The state-administered sales tax system will be a bureaucratic mess, with 50 different states interpreting and enforcing the law in their own unique ways. * **Constitutional issues:** The bill's requirement for repealing the 16th Amendment is a non-starter. Good luck getting two-thirds of Congress to agree on that one.
In conclusion, the FairTax Act of 2025 is a recipe for disaster - a toxic cocktail of regressive taxation, bureaucratic chaos, and constitutional overreach. But hey, at least it's a great way to distract from the real issues facing America, like income inequality and corporate tax evasion. Bravo, politicians! You've managed to create another masterpiece of legislative lunacy.
Related Topics
đź’° Campaign Finance Network
Rep. Carter, Earl L. "Buddy" [R-GA-1]
Congress 119 • 2024 Election Cycle
No committee contributions found
Cosponsors & Their Campaign Finance
This bill has 10 cosponsors. Below are their top campaign contributors.
Rep. Clyde, Andrew S. [R-GA-9]
ID: C001116
Top Contributors
10
Rep. Carter, John R. [R-TX-31]
ID: C001051
Top Contributors
10
Rep. Perry, Scott [R-PA-10]
ID: P000605
Top Contributors
10
Rep. Burlison, Eric [R-MO-7]
ID: B001316
Top Contributors
10
Rep. Rutherford, John H. [R-FL-5]
ID: R000609
Top Contributors
10
Rep. Davidson, Warren [R-OH-8]
ID: D000626
Top Contributors
10
Rep. Biggs, Andy [R-AZ-5]
ID: B001302
Top Contributors
10
Rep. Strong, Dale W. [R-AL-5]
ID: S001220
Top Contributors
10
Rep. McCormick, Richard [R-GA-7]
ID: M001218
Top Contributors
10
Rep. Loudermilk, Barry [R-GA-11]
ID: L000583
Top Contributors
10
Donor Network - Rep. Carter, Earl L. "Buddy" [R-GA-1]
Hub layout: Politicians in center, donors arranged by type in rings around them.
Showing 41 nodes and 45 connections
Total contributions: $132,050
Top Donors - Rep. Carter, Earl L. "Buddy" [R-GA-1]
Showing top 23 donors by contribution amount
Project 2025 Policy Matches
This bill shows semantic similarity to the following sections of the Project 2025 policy document. Higher similarity scores indicate stronger thematic connections.
Introduction
— 698 — Mandate for Leadership: The Conservative Promise Fundamental Tax Reform. Achieving fundamental tax reform offers the prospect of a dramatic improvement in American living standards and an equally dramatic reduction in tax compliance costs. Lobbyists, lawyers, benefit consul- tants, accountants, and tax preparers would see their incomes decline, however. The federal income tax system heavily taxes capital and corporate income and discourages work, savings, and investment. The public finance literature is clear that a consumption tax would minimize government’s distortion of private economic decisions and thus be the least eco- nomically harmful way to raise federal tax revenues.28 There are several forms that a consumption tax could take, including a national sales tax, a business transfer tax, a Hall–Rabushka flat tax,29 or a cash flow tax.30 Supermajority to Raise Taxes. Treasury should support legislation instituting a three-fifths vote threshold in the U.S. House and the Senate to raise income or corporate tax rates to create a wall of protection for the new rate structure. Many states have implemented such a supermajority vote requirement. Tax Competition. Tax competition between states and countries is a positive force for liberty and limited government.31 The Biden Administration, under the direction of Treasury Secretary Janet Yellen, has pushed for a global minimum corporate tax that would increase taxation and the size of government in the U.S. and around the world. This attempt to “harmonize” global tax rates is an attempt to create a global tax cartel to quash tax competition and to increase the tax burden globally. The U.S. should not outsource its tax policy to international organizations. Organization for Economic Co-operation and Development. The Organi- zation for Economic Co-operation and Development (OECD), in conjunction with the European Union, has long tried to end financial privacy and impose regulations on countries with low (or no) income taxes. In fact, on tax, environmental, corpo- rate governance and employment issues, the OECD has become little more than a taxpayer-funded left-wing think tank and lobbying organization.32 The United States provides about one-fifth of OECD’s funding.33 The U.S. should end its finan- cial support and withdraw from the OECD. TAX ADMINISTRATION The Internal Revenue Service is a poorly managed, utterly unresponsive and increasingly politicized agency, and has been for at least two decades. It is time for meaningful reform to improve the efficiency and fairness of tax administration, better protect taxpayer rights, and achieve greater transparency and accountability. A substantial number of the problems attributed to the IRS are actually a function of congressional action that has made the Internal Revenue Code ridiculously complex, imposed tremendous administrative burdens on both the public and the IRS, and given massive non-tax missions to the IRS. But the culture, administrative practices, and management at the IRS need to change. — 699 — Department of the Treasury Doubling the IRS? The Inflation Reduction Act contains a radical $80 billion expansion of the IRS—enough to double the size of its workforce.34 Unless Congress reverses this policy, the IRS will become much more intrusive and impose still greater costs on the American people. The Biden Administration has also sought to make the tax system’s adminis- trative burden much worse in other ways. For example, it has proposed creating a comprehensive financial account information reporting regime that would apply to all business and personal accounts with more than $600. Banks would be required to collect the taxpayer identification numbers of and file a revised Form 1099-K for all affected payees, as well as provide additional information.35 This massive increase in the scope and breadth of information reporting should be unequivo- cally opposed. Management. The IRS has approximately 81,000 employees.36 Of those, only two are presidential appointments—the Commissioner and the Chief Counsel.37 As a practical matter, it is impossible for these two officials to overcome bureau- cratic inertia and to implement policy changes that the IRS bureaucracy wants to impede. That is why, notwithstanding decades of sound and fury, almost nothing has changed at the IRS. For the IRS to change and become more accountable, more transparent, and better managed, there is a need to increase the number of Presidential appoint- ments subject to Senate confirmation, and not subject to Senate confirmation, at the IRS. At the very least, Congress should ensure that the Deputy Commissioner for Services and Enforcement, the Deputy Commissioner for Operations Support, the National Taxpayer Advocate, the Commissioner of the Wage and Investment Division, the Commissioner of the Large Business and International Division, the Commissioner of the Small Business Self-Employed Division, and the Com- missioner of the Tax Exempt and Government Entities Division are presidential appointees.38 Information Technology. Despite the investment of billions of dollars for at least two decades, IRS information technology (IT) systems remain deficient.39 The IRS inadequately protects taxpayer information, its IT systems do not ade- quately support operations or taxpayer services, and its matching and detection algorithms are antiquated. These problems are not primarily about resources. The IRS has spent approxi- mately $27 billion on IT during the past decade, with $7 billion of that designated as “development, modernization and enhancement.“40 The problem is one of man- agement. The bureaucracy is not up to the task, and neither Congress nor a long line of IRS commissioners has forced changes. A Deputy Commissioner for Operations Support with strong IT management skills should be appointed by the IRS Commissioner or the President (once the position is made a presidential appointment). The various subordinates to the
About These Correlations
Policy matches are calculated using semantic similarity between bill summaries and Project 2025 policy text. A score of 60% or higher indicates meaningful thematic overlap. This does not imply direct causation or intent, but highlights areas where legislation aligns with Project 2025 policy objectives.