H.R. 25 (112th): Fair Tax Act of 2011

The Fair Tax Bill (HR 25) was introduced into the House of Representative on January 5, 2011 by Rep. Rob Woodall [GA-7] .  As of January 3, 2013, the bill has 53 co-sponsors (list of sponsors listed below).   According to the Fair Tax Nation website the bill will do the following:

* Enables workers to keep their paychecks free of federal withholding

* Allows retirees to keep their entire pensions

* Refunds in advance the tax on purchases of basic necessities

* Allows American products to compete fairly

* Brings transparency and accountability to tax policy

* Ensures Social Security and Medicare funding

* Closes all loopholes and brings fairness to taxation

* Eliminates Corporate Welfare

* Reduces Lobbying efforts in D.C.

* Promotes a smaller, more efficient, more effective government

* Collects taxes from illegals & the underground economy

* Abolishes the IRS

Co-Sponsors of this Bill

Rep Benishek, Dan [MI-1] - 1/3/2013

Rep Bilirakis, Gus M. [FL-12] - 1/3/2013

Rep Bishop, Rob [UT-1] - 1/3/2013

Rep Bonner, Jo [AL-1] - 1/3/2013

Rep Brady, Kevin [TX-8] - 1/3/2013

Rep Brooks, Mo [AL-5] - 1/3/2013

Rep Broun, Paul C. [GA-10] - 1/3/2013

Rep Carter, John R. [TX-31] - 1/3/2013

Rep Collins, Doug [GA-9] - 1/3/2013

Rep Conaway, K. Michael [TX-11] - 1/3/2013

Rep Crenshaw, Ander [FL-4] - 1/3/2013

Rep Culberson, John Abney [TX-7] - 1/3/2013

Rep Duncan, Jeff [SC-3] - 1/3/2013

Rep Duncan, John J., Jr. [TN-2] - 1/3/2013

Rep Farenthold, Blake [TX-27] - 1/3/2013

Rep Flores, Bill [TX-17] - 1/3/2013

Rep Foxx, Virginia [NC-5] - 1/3/2013

Rep Franks, Trent [AZ-8] - 1/3/2013

Rep Gingrey, Phil [GA-11] - 1/3/2013

Rep Granger, Kay [TX-12] - 1/3/2013

Rep Graves, Tom [GA-14] - 1/3/2013

Rep Hall, Ralph M. [TX-4] - 1/3/2013

Rep Harris, Andy [MD-1] - 1/3/2013

Rep Hensarling, Jeb [TX-5] - 1/3/2013

Rep Huelskamp, Tim [KS-1] - 1/3/2013

Rep Hunter, Duncan D. [CA-50] - 1/3/2013

Rep Issa, Darrell E. [CA-49] - 1/3/2013

Rep Jenkins, Lynn [KS-2] - 1/3/2013

Rep King, Steve [IA-4] - 1/3/2013

Rep Kingston, Jack [GA-1] - 1/3/2013

Rep Lankford, James [OK-5] - 1/3/2013

Rep Long, Billy [MO-7] - 1/3/2013

Rep Lucas, Frank D. [OK-3] - 1/3/2013

Rep McCaul, Michael T. [TX-10] - 1/3/2013

Rep McClintock, Tom [CA-4] - 1/3/2013

Rep Mica, John L. [FL-7] - 1/3/2013

Rep Miller, Jeff [FL-1] - 1/3/2013

Rep Neugebauer, Randy [TX-19] - 1/3/2013

Rep Nugent, Richard B. [FL-11] - 1/3/2013

Rep Olson, Pete [TX-22] - 1/3/2013

Rep Pearce, Stevan [NM-2] - 1/3/2013

Rep Poe, Ted [TX-2] - 1/3/2013

Rep Pompeo, Mike [KS-4] - 1/3/2013

Rep Posey, Bill [FL-8] - 1/3/2013

Rep Price, Tom [GA-6] - 1/3/2013

Rep Rigell, E. Scott [VA-2] - 1/3/2013

Rep Roe, David P. [TN-1] - 1/3/2013

Rep Ross, Dennis A. [FL-15] - 1/3/2013

Rep Stutzman, Marlin A. [IN-3] - 1/3/2013

Rep Thornberry, Mac [TX-13] - 1/3/2013

Rep Walberg, Tim [MI-7] - 1/3/2013

Rep Westmoreland, Lynn A. [GA-3] - 1/3/2013

Rep Young, Don [AK] - 1/3/2013

Below are summaries that I found on the Open Congress Organization.  

Open Congress Summary

This bill would eliminate all federal income taxes, payroll taxes and the estate tax, and replace them with a federal sales tax of 23% on the use or consumption of all goods, properties and services. The Internal Revenue Service would be abolished and replaced by an Excise Tax Bureau and a Sales Tax Bureau in the Department of the Treasury.

Official Summary

1/5/2011--Introduced.Fair Tax Act of 2011 –

Repeals the income tax, employment tax, and estate and gift tax.

Redesignates the Internal Revenue Code of 1986 as the Internal Revenue Code of 2011.

 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 2013, 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 FY2015.

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.



Below are links to sites from which I obtained this information.  


From Open Congress  

Text of the bill from the Library of Congress 

from Fair Tax Nation 

Whatever your views on the Fair Tax, something needs to be done and I'm all for abolishing the IRS!