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Titles Actions Overview All Actions Cosponsors Committees Related Bills Subjects Latest Summary All Summaries

Titles (2)

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.


Actions Overview (1)

Date
01/03/2017Introduced in Senate

All Actions (1)

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

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

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Latest Summary (1)

There is one summary for S.18. View summaries

Shown Here:
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.