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Summary (1)

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Introduced in Senate (01/03/2017)

Fair Tax Act of 2017

This bill is a tax reform proposal that imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income and corporate income tax, employment and self-employment taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2019, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property, for property or services purchased for business, export, or investment purposes, and for state government functions.

Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines.

The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury.

Tax revenues are to be allocated 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.

No funding is authorized for the operations of the Internal Revenue Service after FY2021.

Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.


Actions Overview (1)

Date
01/03/2017 Introduced in Senate

All Actions (1)

Date
01/03/2017 Read twice and referred to the Committee on Finance.
Action By: Senate

Titles (3)

Short Titles:

Short Titles - Senate

Short Titles as Introduced:

Fair Tax Act of 2017

Official Titles:

Official Titles - Senate

Official Titles as Introduced:

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.


Subjects (30)

  • Administrative law and regulatory procedures
  • Constitution and constitutional amendments
  • Department of the Treasury
  • Employment taxes
  • Executive agency funding and structure
  • Foreign and international corporations
  • Fraud offenses and financial crimes
  • Gambling
  • Games and hobbies
  • General taxation matters
  • Government information and archives
  • Government trust funds
  • Income tax credits
  • Income tax deductions
  • Income tax rates
  • Interest, dividends, interest rates
  • Intergovernmental relations
  • Internal Revenue Service (IRS)
  • Medicare
  • Poverty and welfare assistance
  • Sales and excise taxes
  • Small business
  • Social security and elderly assistance
  • State and local government operations
  • State and local taxation
  • Tax administration and collection, taxpayers
  • Tax reform and tax simplification
  • Taxation of foreign income
  • Transfer and inheritance taxes

Cosponsors (4)

* = Original cosponsor
CosponsorDate Cosponsored
Sen. Perdue, David [R-GA]* 01/03/2017
Sen. Isakson, Johnny [R-GA] 01/05/2017
Sen. Inhofe, James M. [R-OK] 01/23/2017
Sen. Lankford, James [R-OK] 02/01/2017

Committees (1)

Committees, subcommittees and links to reports associated with this bill are listed here, as well as the nature and date of committee activity and Congressional report number.

Committee / Subcommittee Date Activity Reports
Senate Finance01/03/2017 Referred to

Related Bills (1)

A related bill may be a companion measure, an identical bill, a procedurally-related measure, or one with text similarities. Bill relationships are identified by the House, the Senate, or CRS, and refer only to same-congress measures.