With a fresh twist to garner support, House Republicans are resurrecting efforts to eliminate the Internal Revenue Service and impose a national sales tax: if approved, illegal immigrants would have to pay taxes.
On Thursday, the FairTax Act of 2025 will be introduced by Representative Earl L. Buddy Carter (R-GA). The Washington Examiner is the only source of the measure, which aims to abolish the federal income tax and the IRS.
According to a Carter administration fact sheet, the FairTax Act would impose a tax on spending itself, collecting money from the black market, tourists, and purchases made by undocumented immigrants.
Carter told the Washington Examiner in an exclusive statement that the FairTax will have a lot of positive effects on our economy, including making illegal immigrants pay their fair amount of taxes.
In addition to giving Americans the freedom to select their own tax rate, this will put a stop to the practice of illegal immigrants using taxpayer-funded resources without contributing to the system.
The Georgia Republican stated, “I’m all for repatriating illegal immigrants, but they should be taxed while they’re here.”
The bill completes the trifecta of immigration and border-related legislation that Republicans have proposed this Congress and have a chance to pass.
With exclusions for used and intangible goods, as well as property acquired for commercial, government, export, or investment purposes, the FairTax Act of 2025 would impose a 23% national sales tax. Depending on certain family size and poverty requirements, legal residents of the United States would be eligible for a monthly sales tax refund.
In 2023, Carter presented the bill, but it was never given committee consideration. Representatives are currently co-sponsoring the 2025 bill. Warren Davidson (R-OH); Andy Biggs (R-AZ); Dale Strong (R-AL); Richard McCormick (R-GA); Barry Loudermilk (R-GA); Andrew Clyde (R-GA); John Carter (R-TX); Scott Perry (R-PA); Eric Burlison (R-MO); John Rutherford (R-FL); and Andy Harris (R-MD).
Decades have been spent fighting for the repeal of the income tax and a fair tax. Experts cautioned that a FairTax would generate less money than the current tax structure and necessitate large federal budget cuts during the 2005 tax reform debate under then-President George W. Bush.
The FairTax has long been supported by grassroots conservatives who emphasize the value of less government and lower taxes.
When Republican Tea Party politicians seized control of the House in 2010, they pledged to drastically reduce President Barack Obama’s spending and tax policies.
However, many of the politicians from that wave had condemned the term “tea party,” and by 2018, the House Tea Party Caucus had disbanded.
The bill is likely to face opposition from Democrats. In 2023, Democratic then-Rep. Wiley Nickel, along with Reps. Brittany Pettersen (D-CO) and Eric Sorensen (D-IL), held a news conference in which they introduced a resolution against a national sales tax and criticized the planned 23% tax.
Rather, the Democrats supported a tax cut for middle-class people, and the Senate was submitted with a resolution sponsored by Democrats.
At the time, Nickel told CNN that a 30% sales tax would be disastrous for working families and individuals in North Carolina and across the nation, who are already struggling with high gas prices, excessive housing costs, and the escalating costs of commodities and daily services.
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Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.