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H.R. 25 House Real Bill Referred to Committee 119th Congress

FairTax Act of 2025

14 Congresses, Zero Floor Votes, One Dream

Legislative Progress Introduced Jan 3, 2025
House Origin → Both Chambers → President
House (origin)
Introduced
2
Committee
3
Passed House
Senate
4
Received in Senate
5
Committee
6
Passed Senate
President
President
Absurdity Index
8/10
7-8Hold My Gavel

Abolishes the IRS entirely and replaces the entire federal tax system with a single 23% national sales tax. Every. Single. Tax. Gone.

Sponsor
Buddy Carter R
Committee
Committee on Ways and Means
Introduced
Jan 3, 2025
Category
Budget

Party Balance

R
Primary Sponsor Buddy Carter
Republican
Cosponsors (30 total)
R:3

Key Milestones

2 total actions

Introduced in House.

Referred to the House Committee on Ways and Means.

Estimated Taxpayer Cost

$158,316

~2 hours of congressional session time at $79,158/hour

(535 members × $174k salary ÷ 147 session days ÷ 8 hours)

Simplified estimate based on salary costs only. Actual costs include staff, facilities, and lost productivity.

Satire notice: Spending figures, pork tracking, and editorial commentary below are satirical estimates for entertainment purposes. They are not official government cost analyses. Legislative history and vote records are real — verify at Congress.gov .

Pork Barrel Meter
$0
$0$100B$1T+
"Squeaky Clean"

Satirical estimate for entertainment purposes

Watch the Sausage Get Made

See how this bill transformed through 3 stages of the legislative process.

Deep Dive

Official CRS Summary

This bill repeals the income tax, employment tax, estate and gift taxes, and replaces them with a national sales tax. It also abolishes the Internal Revenue Service and creates a new Excise Tax Bureau to administer the national sales tax. States would be responsible for collecting the tax under federal supervision.

Read full summary on Congress.gov
All Legislative Actions 2
Introduced in House.
Referred to the House Committee on Ways and Means.
Related Bills 2
S. 18

FairTax Act of 2025

Companion
H.R. 25

FairTax Act of 2023

Related
Text Versions 1
Introduced in House

What This Bill Actually Does

The FairTax Act would fundamentally restructure how the federal government collects revenue by abolishing the Internal Revenue Service, repealing all federal income taxes, payroll taxes, estate taxes, and gift taxes, and replacing them with a 23% national retail sales tax. States would be responsible for collecting the tax under federal supervision.

Congressional Research Service Summary

This bill repeals the income tax, employment tax, estate and gift taxes, and replaces them with a national sales tax. It also abolishes the Internal Revenue Service and creates a new Excise Tax Bureau to administer the national sales tax. States would be responsible for collecting the tax under federal supervision.

The Math Problem

The bill claims a 23% “inclusive” rate, but economists note this is calculated differently from traditional sales tax rates:

  • 23% inclusive: $23 tax on a $100 total purchase (what you pay at the register)
  • 30% exclusive: The same $23 represents 30% of the $77 pre-tax price (traditional calculation)

This is how sales taxes are normally quoted. A 30% sales tax on everything would be the highest in the world.

The Prebate

To offset the regressive nature of a consumption tax (poor people spend a higher percentage of income on necessities), the FairTax includes a monthly “prebate” — essentially a universal basic income payment equal to the poverty level spending times the 23% tax rate.

For a family of four in 2025, this would be approximately $700/month. This is the largest universal cash transfer program ever proposed by Republicans, though they avoid calling it that.

Why This Bill Never Passes

Every Congress since 1999 has seen the FairTax introduced. It has never received:

  • A committee markup
  • A floor vote
  • A CBO score

The reasons are complex:

  1. Revenue uncertainty: No CBO score means no idea if it actually works
  2. Constitutional concerns: May require repealing the 16th Amendment
  3. Transition chaos: Moving from income to sales tax would be enormously disruptive
  4. Political reality: Abolishing income tax benefits high earners; 30% sales tax hurts consumers

The Persistence Award

H.R. 25 holds an unofficial record: introduced in 14 consecutive Congresses without ever receiving a floor vote. The bill number itself (25) is reserved by its sponsors each Congress as a reference to the tax rate. That’s commitment to a bit.

Source: This is a real bill introduced in the 119th Congress. View on Congress.gov.

Disclaimer: The absurdity score and editorial commentary above represent this site’s opinion. Bill details should be verified at Congress.gov.

This page is satirical commentary by AbsurdityIndex.org. Legislative history comes from public congressional records; spending estimates and "pork" figures are editorial and may not reflect official cost analyses. Absurdity scores are subjective editorial ratings. Verify all claims at Congress.gov