Legislative Activity

The FairTax Act of 2025 proposes a fundamental overhaul of the U.S. tax system by repealing federal income, payroll, estate, and gift taxes starting in 2027. In their place, the legislation establishes a national sales tax on new goods and services, supported by a monthly rebate for qualified families to offset the cost of basic necessities. The bill also transitions tax administration to the Treasury Department and includes a sunset provision that terminates the sales tax if the Sixteenth Amendment is not repealed within seven years.

This bill proposes a constitutional amendment to mandate a balanced federal budget, limiting total government spending and requiring justification for each agency's funding requests. It sets spending caps tied to the GDP, necessitates supermajority votes to raise the debt limit or increase revenue, and empowers Congress to enforce these rules. Exceptions are allowed during declared wars or other national emergencies with congressional approval. The amendment would take effect once the budget is balanced or ten years after ratification.