Summary

1/23/2013--Introduced.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... Read More

Status

This bill was introduced on Jan 23, 2013, in a previous session of Congress, but was not passed.

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 2013''. (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 Income taxes repealed.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 Payroll taxes repealed.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 Estate and gift taxes repealed.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 Phase-out of administration of repealed Federal taxes.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 TITLE IV--SUNSET OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED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 Elimination of sales tax if Sixteenth Amendment not repealed.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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Sentiment Map

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Nation

1946 Supporting
147 Opposing
93% 7%

State: CA

113 Supporting
11 Opposing
91% 9%

District: 1st

3 Supporting
1 Opposing
75% 25%

Popularity Trend

Organizations Supporting

100 years of manipulating a tax system is enough. The FairTax will unburden business from the complexity of an income tax reducing the cost of doing business and lowering the cost of goods and services. The national sales tax on retail of new goods and services is a much more efficient system and will lower the costs of administration and enforcement of the tax system. It will do something an income tax system cannot do. It will collect tax from those who avoid paying income tax.

Every American needs to have an understanding of the FairTax and what it could do for this country. If you are sick of the tax-code games, the ever-growing loss of jobs for Americans, the draining of investment monies into offshore accounts and the confusion of a tax code that grows by 3 percent yearly, then learn about the FairTax. Senators Pryor & Boozman, no tax code is perfect. The FairTax comes close. Please co-sponsor SD-122.

Arkansans for FairTax 2 years ago

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.

Oklahoma Fair Tax 2 years ago

Organizations Opposing

No organizations opposing yet.

Users Supporting

I support S. 122 The Fair Tax Act because...Americans do not need to be penalized for working! The only FAIR tax is the FAIR TAX. This will bring back jobs to the USA, and solve so many of our problems with unemployment, people on welfare, and stop the corruption of the IRS and lobbyists....PLEASE PLEASE pass the FAIR TAX...the only hope for our country!!!

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IL
13
Constituent393645
IL-13
6 months ago

I support S. 122 The Fair Tax Act because...It places the tax burden on the consumer and puts everyone in the same boat. For to long certain segments of our society( rich & Poor) have been able to get away with paying little to no taxes. This will simplify the tax code and put everyone in the same boat.

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CA
9
Constituent393147
CA-9
6 months ago

I support S. 122 The Fair Tax Act because the new law would be simple for taxpayers to comply with. Please cosponsor this bill and move it forward in the new Congress. Businesses need clear guidance on tax policies to make good economic decisions. The Fair Tax Act would generate growth for businesses and jobs for the country.

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TX
5
Stonewall2
TX-5
7 months ago

"I believe that a better way to raise revenue not only can be found but must be found because I am convinced that the present system is leading us right back to the very tyranny from which those, who established this land of freedom, risked their lives, their fortunes and their sacred honor to forever free themselves..." T. Coleman Andrews Commissioner of Internal Revenue 1953-1955

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OH
10
MRReynolds
OH-10
8 months ago

I support The Fair Tax Act because it gives us the best opportunity to kick start our economy and creates jobs for Americans.

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OH
10
franksterg55
OH-10
8 months ago

I support The Fair Tax Act because...it is efficient, honest, and simple.

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CA
7
jdhirst20
CA-7
8 months ago

Users Opposing

I oppose The Fair Tax Act because...current sales taxes mostly affect lower-income and middle-class citizens. This would be simply another way for corporations and the ultra-wealthy to pay less than their fair share.

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PA
18
jazomatic
PA-18
1 year ago

I oppose The Fair Tax Act because.the current tax system needs to be abolished and replaced with a simpler system--such as, a Flat Tax. There are detailed reform plans suggested by Congressman Paul Ryan--"Roadmap for America's Future"--and The Heritage Foundation--"Saving the American Dream: The Heritage Plan to Fix the Debt, Cut Spending, and Restore Prosperity." The Heritage plan plans to balance the federal budget by 2021 and reduce the national debt to 30% of GDP by 2035. The "Roadmap" plan phases in reforms more gradually so the federal budget would not balance until after 2055. Without significant changes, the CBO says the national debt will hit 185% of GDP by 2035. Steve Forbes has an article at: www.forbes.com/sites/steveforbes/2014/03/07/the-tax-code-make-it-flat." Also, the USA owes a national debt of $17 trillion to creditors plus $57 trillion to cover a range of "unfunded liabilities." These debts could result in an economic implosion unless we make courageous reforms immediately. Please see "Joel Rosenberg blog" of 15 April 2014 for further information. Vote "No" on a bill that penalizes seniors and low-income families. .

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CO
7
Ruth
CO-7
1 year ago

I oppose The Fair Tax Act because it effectively creates a value added tax (VAT), which has been a nightmare in the economies of all who adopt it!

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UT
2
TAdams
UT-2
1 year ago

I oppose The Fair Tax Act because it would increase the burden on low income earners and stifle business that produce high ticket items.

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NY
20
Anonymous306817
NY-20
1 year ago

I oppose The Fair Tax Act because it should not tax necessities in lieu of a "prebate" or voucher. It should be a simple system that's straightforward and by excluding necessities we can avoid having to issue vouchers. Although at some point a necessity becomes luxury, the tipping point should be determined on a scale tied to the minimum wage.

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NC
11
titanofold
NC-11
1 year ago

I oppose S. 122: Fair Tax Act of 2013 first of all because it is being promoted disingenuously as a 23% tax -- knowing full well that this is an "inclusive" percentage, while virtually EVERYONE thinks of taxes in "exclusive" or "additional" terms. In terms that most people understand, this is REALLY a 30% tax. If we are to discuss this tax, let's discuss it HONESTLY. So, if I go to the store and buy a $77 power tool, I would pay $23 in tax on it. That $23 tax is 30% of the cost of my tool. (Added together, I'm spending $100, which is how the $23 tax is being twisted into a 23% figure.) Let's be frank, someone made the decision to call it a 23% tax because it sounds better than the 30% that people would recognize it as. Furthermore, this so-called "Fair" Tax is a regressive tax. People would get a "prebate" to cover taxes on poverty-level necessities, which is a good start -- but people who are JUST ABOVE the poverty level would be hit hard by this tax. This tax would be an excessive hardship on most people of below the median income level -- and somewhat of a hardship to those just above it. I have other concerns, too. Please feel free to contact me if you are interested in those.

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IL
11
BobGiesen
IL-11
1 year ago

Bill Summary

1/23/2013--Introduced.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 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 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.

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