Fair Tax Act of 2005

Bill: 109-s-25
Sponsor: Sen. Chambliss, Saxby [R-GA]
Introduced: 2005-01-24 in the Senate
Policy area: Taxation
Subjects: Administrative fees
Administrative procedure
Administrative remedies
Affiliated corporations
Aliens
Commerce
Cost of living adjustments
Department of the Treasury
Economics and Public Finance
Estate tax
Executive reorganization
Exports
Families
Finance and Financial Sector
Financial services
Foreign Trade and International Finance
Foreign corporations
Gambling
Gift tax
Government Operations and Politics
Government paperwork
Government trust funds
Health
Hobbies
Immigration
Income tax
Insurance
Interest
Intergovernmental tax relations
Internal Revenue Service (IRS)
Internal revenue law
Interstate compacts
Inventories
Labor and Employment
Law
Loan defaults
Medicare
Old age, survivors and disability insurance
Payroll deductions
Poverty
Rebates
Sales tax
Science, Technology, Communications
Small business
Social Welfare
Social security finance
Social security taxes
Sports and Recreation
Tax administration
Tax auditing
Tax courts
Tax credits
Tax liens
Tax penalties
Tax refunds
Tax returns
Tax simplification
Taxation of foreign income
Taxpayer compliance
Taxpayers
Telephone
Wages
Withholding tax

Summary:
action_date: 2005-01-24
text: 
Fair Tax Act of 2005 - Repeals the income tax, employment tax, and estate and gift tax. Redesignates the Internal Revenue Code of 1986 as the Internal Revenue Code of 2005. 

 
 
 
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 percent in 2007, 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 familes a sales tax rebate. 
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 FY 2009. Establishes in the Department of the Treasury: (1) an Excise Tax Bureau to administer excise taxes not administered by the Bureau of Alcohol, Tobacco and Firearms (ATF); and (2) a Sales Tax Bureau to administer the national sales tax.

Legislative actions:
action_date: 2005-01-24
text: Read twice and referred to the Committee on Finance.
action_date: 2005-01-24
text: Sponsor introductory remarks on measure. (CR S215)
action_date: 2005-01-24
text: Introduced in Senate