Fair Tax Act of 2013

Bill: 113-s-122
Sponsor: Sen. Chambliss, Saxby [R-GA]
Introduced: 2013-01-23 in the Senate
Policy area: Taxation
Subjects: 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

Summary:
action_date: 2013-01-23
text: 
Fair Tax Act of 2013 - Repeals the income tax, employment tax, and estate and gift tax. Redesignates the Internal Revenue Code of 1986 as the Internal Revenue Code of 2013.
 
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% in 2015, 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 a monthly sales tax rebate for families meeting certain size and income requirements. 
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 FY2017. Establishes in the Department of the Treasury: (1) an Excise Tax Bureau to administer excise taxes not administered by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and (2) a Sales Tax Bureau to administer the national sales tax. 
Terminates the sales tax imposed by this Act if the Sixteenth Amendment to the U.S. Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this Act.

Legislative actions:
action_date: 2013-01-23
text: Read twice and referred to the Committee on Finance.
action_date: 2013-01-23
text: Sponsor introductory remarks on measure. (CR S223)
action_date: 2013-01-23
text: Introduced in Senate