Rep. Earl “Buddy” Carter (R-Ga.) introduced the Fair Tax Act of 2025, which aims to abolish the Internal Revenue Service.
If passed, the new law would not only abolish the IRS but also eliminate the federal income tax.
A fact sheet sent by Carter's office to the Washington Examiner said the bill would capture “the underground economy, tourism funding, and purchases made by illegal immigrants.”
This is said to be achieved by introducing a domestic sales tax of 23%, with some exceptions.
“As long as they're here, they should be taxed.”
“The Fair Tax would have far-reaching benefits across our economy, but one of the most important is forcing undocumented immigrants to pay their fair share of taxes,” Carter said. examiner. “This would eliminate instances where illegal immigrants take advantage of taxpayer funds without contributing to the system, while giving Americans the power to choose their tax rates.”
It is unclear what the lawmaker meant in terms of Americans choosing their tax rates.
At the same time, Georgia's representative emphasized that she still supports the relocation of undocumented immigrants.
“I'm all for deporting illegal immigrants, but they should be taxed as long as they're here,” Carter added.
However, taxing illegal immigrants is not specifically mentioned in the law, as it is seemingly impossible to implement on a case-by-case basis.
Under the Fair Tax Act of 2025, the new sales tax has several exceptions. Exceptions include the sale of used “intangible assets” and assets purchased for business, government, export, or investment purposes.
The legislation would also give “legal U.S. residents” the opportunity to receive a monthly sales tax refund based on certain criteria related to income and family size.
This bill was originally 2023 But it didn't move.
The bill's summary stated that the tax rate (starting at 23%) would be adjusted “in the following year.”
At the same time, the bill would “suspend the national sales tax if the Sixteenth Amendment to the Constitution (Authorizing Income Taxes) is not repealed within seven years after enactment of this bill.”
This means that the 23% tax is effectively a seven-year tax, after which there would theoretically be no sales tax at all.
The original text of the bill made several claims that the federal income tax impedes economic growth and “depresses the standard of living of the American people.”
Blaze News has reached out to Trump's transition team for comment on the bill. This article will be updated with any relevant answers.
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