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Adds new subsections to and revises subsection (a)(2) of 26 U.S.C. 7801: creates an Excise Tax Bureau and a Sales Tax Bureau within the Department of the Treasury and modifies the text of subsection (a)(2) governing assistant general counsels.
Makes conforming amendments to 26 U.S.C. 7802 by striking subsections (a) and (b), redesignating subsections (c) and (d) as (a) and (b), replacing each place a specified term appears with "Department of the Treasury", and replacing certain other terms with "Commissioner of Internal Revenue".
Amends subparagraph (D) of 42 U.S.C. 415(i)(1) (section 215(i)(1)) to redefine the CPI increase percentage and to provide for inclusion of the national sales tax in the cost-of-living computation by applying a national sales tax factor and defining that factor in terms of the sales tax rate imposed by section 101.
Ends federal income, payroll, estate, and gift taxes and replaces them with a national sales tax starting January 1, 2027. Social Security trust funds would be financed from general revenues, and cost‑of‑living adjustments would factor in the new sales tax.
It rewrites large parts of the tax code, creates new Treasury bureaus to run the sales and excise tax systems, winds down many IRS activities tied to the repealed taxes, and orders most legacy tax records destroyed by the end of FY2029. If the Sixteenth Amendment is not repealed within seven years, the Act’s use/consumption tax provisions would end for future years.
Referred to the House Committee on Ways and Means.
Introduced January 3, 2025 by Buddy Carter · Last progress January 3, 2025