United States 119th Congress Status: In Committee 15 R cosponsors

HR 25 — FairTax Act of 2025

Last action — Referred to the House Committee on Ways and Means.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House. Introduced January 03, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Odds of enactment

Low chance

Based on the sponsor, cosponsors, and committee posture, this bill has a low chance of becoming law.

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A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Stalled 26% · moderate confidence

  • In Committee

    Current position in the legislative process.

  • 15 sponsors

    1 primary, 14 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (15 R).

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

HR 25 aims to modify the tax code in the U.S.

HR 25 is a bill introduced in the House that seeks changes to the current tax law. It will be reviewed by the House Committee on Ways and Means.

Summary

FairTax Act of 2025This bill replaces federal income, payroll, estate, and gift taxes with a federal sales tax beginning in 2027 and eliminates the Internal Revenue Service.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 general revenue rate (14.91%);old-age, survivors and disability insurance rate; andhospital insurance rate. The bill includes exemptions for property or services purchased for business, investment, and certain state government functions.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. Each family member must have a Social Security number and be a lawful resident of the United States. Federal sales tax revenues are allocated to general revenue, the Social Security trust funds, and the Medicare trust funds. (Special allocation rules apply for 2027.)The bill eliminates appropriations for the Internal Revenue Service after FY2029 and establishes an Excise Tax Bureau and a Sales Tax Bureau within the Department of the Treasury. Finally, the bill terminates the federal sales tax if the Sixteenth Amendment to the Constitution (authorizing a federal income tax) is not repealed within seven years from the date the bill is enacted.

Bill Text

How this bill changes current law

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Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill repeals existing income and payroll taxes, effectively abolishing the funding mechanisms for Social Security and related programs under existing law.

  • Section 401

    There is hereby created on the books of the Treasury of the United States a trust fund to be known as the 'Federal Old-Age and Survivors Insurance Trust Fund'.

    The trust fund for old-age and survivors insurance will be eliminated.

  • Section 401

    The Federal Old-Age and Survivors Insurance Trust Fund shall consist of the securities held by the Secretary of the Treasury...

    Existing assets and securities held for the Old-Age Insurance Trust Fund will no longer exist.

  • Section 401

    There is hereby appropriated to the Federal Old-Age and Survivors Insurance Trust Fund... amounts equivalent to 100 per centum of—

    Funding from the Treasury to the Old-Age and Survivors Insurance Trust Fund will cease.

  • Section 401

    the taxes (including interest, penalties, and additions to the taxes) received under subchapter A of chapter 9 of the Internal Revenue Code of 1939...

    Existing tax sources for funding this trust fund will be repealed.

  • Section 102

    Subtitle C of the Internal Revenue Code of 1986 (relating to payroll taxes and withholding of income taxes) is repealed.

    Payroll taxes that fund Social Security and Medicare will be abolished.

Action History

  1. Introduced in House

  2. Introduced in House

  3. Referred to the House Committee on Ways and Means.

Sponsors

Sponsorship breakdown

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1 sponsors · 14 co-sponsors · 532 not signed on

Sponsors (1)

Co-sponsors (14)

Not signed on (532)

532 members have not signed on to this bill.

Show all 532 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation healthcare labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HR 25 do?
FairTax Act of 2025This bill replaces federal income, payroll, estate, and gift taxes with a federal sales tax beginning in 2027 and eliminates the Internal Revenue Service.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 general revenue rate (14.91%);old-age, survivors and disability insurance rate; andhospital insurance rate. The bill includes exemptions for property or services purchased for business, investment, and certain state government functions.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. Each family member must have a Social Security number and be a lawful resident of the United States. Federal sales tax revenues are allocated to general revenue, the Social Security trust funds, and the Medicare trust funds. (Special allocation rules apply for 2027.)The bill eliminates appropriations for the Internal Revenue Service after FY2029 and establishes an Excise Tax Bureau and a Sales Tax Bureau within the Department of the Treasury. Finally, the bill terminates the federal sales tax if the Sixteenth Amendment to the Constitution (authorizing a federal income tax) is not repealed within seven years from the date the bill is enacted.
Who sponsors HR 25?
HR 25 is sponsored by Carter, Earl L. "Buddy" (Republican), Clyde, Andrew S. (Republican), Carter, John R. (Republican), Perry, Scott (Republican), Burlison, Eric (Republican), Rutherford, John H. (Republican), Davidson, Warren (Republican), Biggs, Andy (Republican), Strong, Dale W. (Republican), McCormick, Richard (Republican), Loudermilk, Barry (Republican), Harris, Andy (Republican), Harris, Mark (Republican), Collins, Mike (Republican), and Moore, Barry (Republican).
What is the current status of HR 25?
This bill is in committee in the House. Introduced January 03, 2025. It must pass committee before a floor vote.
Where can I track HR 25?
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