Likely helped
- No clear beneficiaries surfaced yet.
H.R. 25 (119th)Bill Overview
FairTax Act of 2025
Taxation|Administrative law and regulatory proceduresConstitution and constitutional amendments
Sponsor
Cosponsors
Support
Republican
Introduced
Jan 3, 2025
Discussions
Bill Text
Current stageCommittee
Referred to the House Committee on Ways and Means.
Introduced
Committee
Floor
President
Law
01 · The brief
Plain-English summaryWhat this bill actually does
<p><strong>FairTax Act of 2025</strong></p><p>This bill replaces federal income, payroll, estate, and gift taxes with a federal sales tax beginning in 2027 and eliminates the Internal Revenue Service.</p><p>The bill establishes a 23% tax-inclusive (30% tax-exclusive) federal sales tax rate on taxable property and services to be administered primarily by each state. The federal sales tax rate is adjusted annually beginning in 2028 so that it is the sum of the </p><ul><li>general revenue rate (14.91%);</li><li>old-age, survivors and disability insurance rate; and</li><li>hospital insurance rate. </li></ul><p>The bill includes exemptions for property or services purchased for business, investment, and certain state government functions.</p><p>Registered, qualified families may receive a monthly sales tax rebate in the amount of the monthly federal poverty level (or twice such amount for married individuals) multiplied by the federal sales tax rate.
Why people may split
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
Watch point
The next hurdle is converting committee movement into a floor coalition.
<p><strong>FairTax Act of 2025</strong></p><p>This bill replaces federal income, payroll, estate, and gift taxes with a federal sales tax beginning in 2027 and eliminates the Internal Revenue Service.</p><p>The bill establishes a 23% tax-inclusive (30% tax-exclusive) federal sales tax rate on taxable property and services to be administered primarily by each state.
The federal sales tax rate is adjusted annually beginning in 2028 so that it is the sum of the </p><ul><li>general revenue rate (14.91%);</li><li>old-age, survivors and disability insurance rate; and</li><li>hospital insurance rate. </li></ul><p>The bill includes exemptions for property or services purchased for business, investment, and certain state government functions.</p><p>Registered, qualified families may receive a monthly sales tax rebate in the amount of the monthly federal poverty level (or twice such amount for married individuals) multiplied by the federal sales tax rate.
Passage38/100
This bill has moved beyond introduction, but committee and floor dynamics still determine whether it can build durable support.
CredibilityPartial
How solid the drafting looks.
Contention62/100
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
02 · What it does
Who stands to gain, and who may push back.
Likely benefits vs burdens0% / 100%
Likely helpedLikely burdened
These are examples from the analysis, not a ranked list of the most-affected groups.
Likely burdened
- No clear downsides surfaced yet.
03 · Why people split
Why the argument around this bill splits.
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
Progressive—
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
Centrist—
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
Conservative—
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
04 · Can it pass?
The path through Congress.
Introduced
Reached or meaningfully advanced
Committee
Reached or meaningfully advanced
Floor
Still ahead
President
Still ahead
Law
Still ahead
Passage likelihood38/100
This bill has moved beyond introduction, but committee and floor dynamics still determine whether it can build durable support.
Why this could stall
- The next hurdle is converting committee movement into a floor coalition.
05 · Recent votes
Recent votes on the bill.
No vote history yet
The bill has not accumulated any surfaced votes yet.
06 · Go deeper
Go deeper than the headline read.
Included on this page
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
This bill has moved beyond introduction, but committee and floor dynamics still determine whether it can build durable support.
Unlocked analysis
Pro readers get the full perspective split, passage barriers, legislative design review, stakeholder impact map, and lens-based policy tradeoff analysis for FairTax Act of 2025.
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.
Perspective breakdownsPassage barriersLegislative design reviewStakeholder impact map
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