Summary

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... Read More

Status

Date Introduced
Jan 5, 2011

Co-Sponsors

r-69
d-1

Bill Text

A BILL

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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Fair Tax Act of 2011''. (b) Table of Contents.--The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents. Sec. 2. Congressional findings. TITLE I--REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND ESTATE AND GIFT TAXES

Sec. 101. Income taxes repealed. Sec. 102. Payroll taxes repealed. Sec. 103. Estate and gift taxes repealed. Sec. 104. Conforming amendments; effective date. TITLE II--SALES TAX ENACTED

Sec. 201. Sales tax. Sec. 202. Conforming and technical amendments. TITLE III--OTHER MATTERS

Sec. 301. Phase-out of administration of repealed Federal taxes. Sec. 302. Administration of other Federal taxes. Sec. 303. Sales tax inclusive Social Security benefits indexation. TITLE IV--SUNSET OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED

Sec. 401. Elimination of sales tax if Sixteenth Amendment not repealed.

SEC. 2. CONGRESSIONAL FINDINGS.

(a) Findings Relating to Federal Income Tax.--Congress finds the Federal income tax-- (1) retards economic growth and has reduced the standard of living of the American public; (2) impedes the international competitiveness of United States industry; (3) reduces savings and investment in the United States by taxing income multiple times; (4) slows the capital...

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State: CA

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Popularity Trend

Organizations Supporting

1. Rescue the homeowner and you rescue the economy The FairTax will end the harmful practice of withholding taxes from paychecks, and millions of Americans will see a huge boost in their take home pay--enough to save their homes and pay mortgage bills. 2. A $10 trillion dollar stimulus program funded with private investments Economists say the FairTax will attract literally trillions of dollars into our economy from offshore. That means new jobs right here in America (a point I know you readily appreciate), higher wages and a stock market that goes up instead of down. 3. Bring Back the "Made in America" Label The FairTax ends the retail price disadvantage American producers suffer under the income tax system. The income tax system adds up to 20% to the price of American products and that chases our manufacturing and service industries offshore. The FairTax gives American companies--and jobs--a fair chance. https://secure2.convio.net/afft/site/Advocacy?pagename=homepage&page=UserAction&id=121&JServSessionIdr004=d3yuorjie2.app209a

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The FairTaxNation organization highly endorses the FairTax act as proposed by Congressman Rob Woodall of Georgia. The reasoning for this comes from the realization that the FairTax Act is the most well researched federal level tax reform/replacement plan ever proposed in America. It will be "The Greatest Transfer of Power to the American Citizen Since 1776."

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FairTaxNation
4 years ago

In response to overwhelming sentiment calling for a simpler, more fair and efficient, and less intrusive system of taxation, NSBA became the first small-business organization to endorse the Fair Tax—a 23-percent, single rate, national retail sales tax which would be applied to the sale of all consumer goods and services at the final point of consumption. The Fair Tax ensures that every taxpayer will be subject to the same tax rate with no exceptions and no exclusions. Those who are least able to share in the cost of government will bear no burden at all. Tax rates will depend on the amount of purchases made. Used items will not be taxed, which promotes reutilization. Business-to- business purchases for the production of goods and services will not be taxed. In addition, the Fair Tax will replace the individual federal income tax, the capital gains tax, all payroll taxes, corporate income taxes, the self-employment tax and the estate and gift taxes. http://www.nsba.biz/docs/2011/Fair_Tax.pdf

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The FairTax not only helps businesses grow without the burden of punitive taxes, it also returns the power of government funding back to the people. Yet the FairTax 'DOES NOT' hurt poor and middle class families because every legitimate American household is untaxed up to the poverty level making the FairTax progressive and fair to all.

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Oklahoma Fair Tax 3 years ago

HR-25 implements a revenue neutral tax collection system that is much more efficient, captured income currently avoiding tax and assures no person or family living in America is taxed on the basic essentials of life. By reducing the tax and compliance burden on business it creates jobs, make us competative internatioally and grows our economy.

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1. The Fair Tax Gets Rid of the Hidden Costs in Goods What do I mean by this? Right now all of the things you buy have a lot of markup to cover the cost of taxes on businesses. Businesses have to pay social security taxes for every employee along with high corporate taxes on profits. If you take these away competition will bring the price of everything down significantly. 2. The Fair Tax Will Bring Businesses to America Which Means JOBS Right now the current tax code is decidedly against businesses. The Fair Tax would lower the cost of doing business dramatically, and that means we could compete on a global scale. We can actually export goods on an even footing again. That means manufacturing jobs would come back lowering our unemployment. 3. The Fair Tax Gets Rid of Our Current Tax Code Enough said. 4. The Fair Tax Would Tax Drug Dealers and Other Illegal Income Needless to say they are not paying income taxes but they do buy things in our country. A fair tax would broaden the tax base to include these criminals as well as the millions of illegal immigrants in our country. 5. Did I Mention Getting Rid of the Tax Code? It is several volumes long and the loopholes are huge. People making almost nothing pay a similar tax rate to millionaires in some cases because of our complicated code. Special interest groups have put so many ridiculous things into our income tax system it is ridiculous. 6. Stop Taxing Investments, Create More Jobs A fair tax would stop taxes on capital gains and other investment income. This would create an environment where people want to invest in businesses. This creates even more jobs. 7. The Fair Tax Lets You Take Home Your Whole Paycheck We will have more jobs and everyone gets to take home their whole paycheck. Wouldn’t it be nice to have your whole check to spend on whatever you want? Wouldn’t it be nice to be able to save and invest as much as want?

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Organizations Opposing

Today, the panel is scheduled to hear from two panels, one on the Fair Tax Act national sales tax proposal and the other on proposals to create a nationwide VAT. Bernstein said either would drive up prices for consumers, negatively impact the economy and reduce employment. “The United States should not experiment with a brand new tax system that will put our economic future at risk,” she said. “In addition to the overall impact of consumption taxes on the economy, retailers are particularly concerned with the impact of consumption taxes on our customers. Consumption taxes are highly regressive and will raise the tax burden on lower- and middle-income Americans.” The Fair Tax Act, pushed in Congress for more than a decade, would abolish the Internal Revenue Service and replace the federal income tax with a national sales tax. Supporters cite the rate as 23 percent, but it would actually be 30 percent when calculated the same as current state or local sales taxes, and economists have said an even higher figure would be needed to fully replace current tax revenue. NRF has fought the proposal for years because of the impact the huge tax would have on retail sales. Bernstein cited a PricewaterhouseCoopers study commissioned by NRF when the plan was first proposed in 2000 that found it would bring a three-year decline in the economy, a four-year decline in employment and an eight-year decline in consumer spending. The Fair Tax was rejected in 2005 by former President George Bush’s Advisory Panel on Tax Reform, with members saying the tax would place too great a burden on lower- and middle-income Americans. The advisory panel cited Treasury Department estimates that a rate of 34 percent could be needed if applied to all goods and services in the economy, including health care and new home purchases, and as high as 64 to 89 percent if exemptions were made similar to those made for state sales taxes. Bernstein also cited a 2010 Ernst and Young study on the macroeconomic impact of a VAT commissioned by NRF, which found that adding a VAT to the current tax system would cause the loss of 850,000 jobs in the first year alone, reduce GDP for three years and reduce retail spending by $2.5 trillion over the first 10 years. Among the witnesses on today’s VAT panel is Ernst and Young economist Robert Carroll, chief author of the study. http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=1158

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Users Supporting

I support H.R. 25: Fair Tax Act of 2011 because... we have all sat back and watched as China and other countries have taken over the production of our goods. In some cases, China is even killing us with the very products we have them manufacture for us. If this keeps going the way it's going; it won't be "Made in China" anymore, but rather "Owned and Operated by China" as well! Do something positive for AMERICA, pass H.R. 25

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1 year ago

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Bill Summary

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.

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