H.R. 2525
Fair Tax Act of 2001

Sponsor: Rep Linder, John (introduced 7/17/2001)
Latest Major Action: 7/17/2001 Referred to House committee

SHORT TITLE(S) AS INTRODUCED:

Fair Tax Act of 2001

OFFICIAL TITLE AS INTRODUCED:

To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. (Emphasis added not in original text)

STATUS: 7/17/2001: Referred to the House Committee on Ways and Means.

COSPONSORS  (7):

Rep Barcia, James A. - 7/17/2001
Rep Bonilla, Henry - 7/17/2001
Rep Condit, Gary A. - 7/17/2001
Rep Hall, Ralph M. - 7/17/2001
Rep Lewis, Jerry - 7/17/2001
Rep Young, Don - 7/17/2001
Rep Collin C. - 7/17/2001

SUMMARY AS OF:
7/17/2001--Introduced.

Fair Tax Act of 2001 - Amends the Internal Revenue Code to repeal subtitle A (Income Taxes), B (Estate and Gift Taxes), and C (Employment Taxes) of the Internal Revenue Code.

Imposes a tax on the use or consumption in theUnited States of taxable property or services.Sets the tax rate at 23 percent for the calendar year 2003.Sets the rate, for years after 2003, at the combined sum of the general revenue rate (14.91 percent), the old-age survivors and disability rate, and the hospital insurance rate.

Sets forth provisions concerning, among other things; (1) imports and exports; (2) definitions; (3) credits and refunds; (4) a "family consumption allowance"; (5) Federal and State cooperative tax administration; (6) administrative matters; (7) collections, appeals, and taxpayer rights; (8) special rules (hobbies, gaming, government purchases, non-profits, and etc.); (9) financial intermediation services; and (10) additional matters.

Sets forth provisions concerning the: (1) phase-out of administration of repealed taxes; (2) administration of other taxes (establishes an Excise Tax Bureau and a Sales Tax Bureau); and (3) sales tax inclusive social security benefits indexation.