I 
119TH CONGRESS 
1ST SESSION 
H. R. 25 
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. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 3, 2025 
Mr. CARTER of Georgia (for himself, Mr. CLYDE, Mr. CARTER of Texas, Mr. 
PERRY, Mr. BURLISON, Mr. RUTHERFORD, Mr. DAVIDSON, Mr. BIGGS 
of Arizona, Mr. STRONG, and Mr. MCCORMICK) introduced the following 
bill; which was referred to the Committee on Ways and Means 
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 Representa-
tives 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 
‘‘FairTax Act of 2025’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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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 Income taxes repealed.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 Payroll taxes repealed.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 Estate and gift taxes repealed.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 Phase-out of administration of repealed Federal taxes.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NOT REPEALED 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 Elimination of sales tax if Sixteenth Amendment not repealed.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 formation necessary for 
real wages to steadily increase; 
(5) lowers productivity; 
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(6) imposes unacceptable and unnecessary ad-
ministrative and compliance costs on individual and 
business taxpayers; 
(7) is unfair and inequitable; 
(8) unnecessarily intrudes upon the privacy and 
civil rights of United States citizens; 
(9) hides the true cost of government by embed-
ding taxes in the costs of everything Americans buy; 
(10) is not being complied with at satisfactory 
levels and therefore raises the tax burden on law- 
abiding citizens; and 
(11) impedes upward social mobility. 
(b) FINDINGS RELATING
TO FEDERAL PAYROLL 
TAXES.—Congress finds further that the Social Security 
and Medicare payroll taxes and self-employment taxes— 
(1) raise the cost of employment; 
(2) destroy jobs and cause unemployment; and 
(3) have a disproportionately adverse impact on 
lower income Americans. 
(c) FINDINGS RELATING TO FEDERAL ESTATE AND 
GIFT TAXES.—Congress finds further that the Federal es-
tate and gift taxes— 
(1) force family businesses and farms to be sold 
by the family to pay such taxes; 
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(2) discourage capital formation and entrepre-
neurship; 
(3) foster the continued dominance of large en-
terprises over small family-owned companies and 
farms; and 
(4) impose unacceptably high tax planning costs 
on small businesses and farms. 
(d) FINDINGS
RELATING
TO
NATIONAL
SALES 
TAX.—Congress finds further that a broad-based national 
sales tax on goods and services purchased for final con-
sumption— 
(1) is similar in many respects to the sales and 
use taxes in place in 45 of the 50 States; 
(2) will promote savings and investment; 
(3) will promote fairness; 
(4) will promote economic growth; 
(5) will raise the standard of living; 
(6) will increase investment; 
(7) will enhance productivity and international 
competitiveness; 
(8) will reduce administrative burdens on the 
American taxpayer; 
(9) will improve upward social mobility; and 
(10) will respect the privacy interests and civil 
rights of taxpayers. 
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