House Republicans are making a renewed push to implement a national sales tax and eliminate the Internal Revenue Service (IRS). However, they are approaching this effort with a new strategy to garner support. Under their proposed legislation, if it becomes law, undocumented immigrants would be obligated to pay taxes.
Rep. Earl L. “Buddy” Carter (R-GA) is set to present the FairTax Act of 2025 this Thursday. The Washington Examiner has exclusively obtained the bill, which aims to eliminate the IRS and revoke the federal income tax. According to a fact sheet from Carter’s office, if the FairTax Act is enacted, it will impose a tax on expenditures, effectively encompassing the underground economy, tourism revenue, and purchases made by illegal immigrants.
“The FairTax, according to Carter, would bring about numerous advantages to our economy. One notable benefit would be its ability to ensure that illegal immigrants contribute their fair share in taxes. In an exclusive statement to the Washington Examiner, Carter emphasized that this would put an end to situations where illegal immigrants utilize taxpayer-funded resources without making any contributions. Additionally, the FairTax empowers Americans by allowing them to have control over their own tax rates.”
“I fully support the repatriation of illegal immigrants, but I also believe that while they are residing here, they should be subject to taxation,” expressed the Georgia Republican.
Several pieces of legislation aimed at immigration and border control are being reintroduced in Congress. With Republicans now having a trifecta, these bills have a better chance of passing.
Under the FairTax Act of 2025, a 23% national sales tax would be implemented, with certain exceptions for used and intangible property, as well as property bought for business, government, export, or investment purposes. Individuals who are considered “lawful U.S. residents” would be eligible for a monthly sales tax rebate. The eligibility for this rebate would be determined based on specific criteria related to poverty guidelines and family size.
The bill was introduced by Carter in 2023, but the committee never took it up. Currently, the 2025 bill has co-sponsors including Reps. Andrew Clyde (R-GA), John Carter (R-TX), Scott Perry (R-PA), Eric Burlison (R-MO), John Rutherford (R-FL), Warren Davidson (R-OH), Andy Biggs (R-AZ), Dale Strong (R-AL), Richard McCormick (R-GA), Barry Loudermilk (R-GA), and Andy Harris (R-MD).
The fight for a FairTax and the repeal of the income tax has been ongoing for decades. In the 2005 tax reform debate during the presidency of George W. Bush, experts cautioned that implementing a FairTax would result in lower revenue compared to the existing tax system and necessitate significant reductions in federal government spending.
Grassroots conservatives have long been strong advocates of the FairTax, advocating for fewer taxes and a smaller government. When Republican “Tea Party” lawmakers gained control of the House in 2010, they pledged to implement significant tax cuts and roll back the spending policies introduced by President Barack Obama.
In 2018, the House Tea Party Caucus disbanded, and numerous lawmakers from that wave criticized the use of the “tea party” label.
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In 2023, a press conference was held by Democratic then-Rep. Wiley Nickel, along with Reps. Eric Sorensen (D-IL) and Brittany Pettersen (D-CO), where they voiced their opposition to the proposed 23% tax and introduced a resolution against implementing a national sales tax. The Democrats advocated for a tax cut aimed at benefiting middle-class families, and a corresponding resolution was introduced in the Senate, led by the Democrats.
Nickel expressed his concerns about the potential consequences of a 30% sales tax on working families and individuals in North Carolina and across the nation. He emphasized that these households are already grappling with various financial challenges such as expensive gasoline, high housing expenses, and the escalating costs of goods and everyday services.
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