What is House Bill H.R. 25?
Cost of House Bill H.R. 25
The FairTax has been introduced to Congress multiple times since its debut in 1999. It has been met with criticism from proponents of the U.S.'s current progressive tax system, and those who support a flat tax.
In 2007, Factcheck.org conducted an analysis of FairTax bill and found that it would raise the general number of federal taxes paid by people making between $30,000 and $200,000. Meanwhile, the FairTax would reduce the share of federal taxes paid by those making less than $30,000 and more than $200,000. This study concluded that the tax rate needed to make this proposal revenue-neutral — basically meaning that won't increase the deficit — would be 31.2 percent. Yup, significantly more than the stated 23%.
The rebate system proposed by the FairTax would function by calculating the amount spent by poverty level households every month, and sending the qualifying households a check or electronic deposit for that amount each month. Based on 2014 numbers, that amount would be $1,983. In practice, this rebate would actually be a “prebate” since the money would be available to the individual or family before making purchases, so they aren’t negatively impacted by the increased sales tax when they shop for necessities.
This current iteration of the FairTax has received a record level of support in Congress. This is perhaps due to the growing disillusionment with the IRS following the scandal that revealed the agency was targeting conservatives based on their political views.
Forbes (Opposed)(Photo Credit: LegalInsurrection.com)
FairTax Act of 2015
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.
- Not enactedThe President has not signed this bill
- The senate has not voted
- The house has not voted
Committee on Ways and MeansIntroducedJanuary 6th, 2015
- house Committees