House Republicans are reviving efforts to impose a national sales tax and abolish the Internal Revenue Service, but with a new twist to entice support: if passed, illegal immigrants would be required to pay taxes.
Representative Earl L. “Buddy” Carter (R-GA) will introduce the FairTax Act of 2025 on Thursday. The bill, obtained exclusively by the Washington Examiner, seeks to eliminate the IRS and the federal income tax.
The FairTax Act, if signed into law, would levy a tax on spending itself, “capturing the underground economy, tourism dollars, and purchases made by illegal immigrants,” according to a Carter administration fact sheet.
“The FairTax will have widespread benefits throughout our economy, not the least of which is forcing illegal immigrants to pay their fair share of taxes,” Carter told the Washington Examiner in an exclusive statement.
“This will end the practice of illegal immigrants using taxpayer-funded resources without paying into the system, while also allowing Americans to choose their tax rate.
“I’m all for repatriation of illegal immigrants, but as long as they’re here, they should be taxed,” the Georgia Republican said.
The bill joins several pieces of legislation aimed at immigration and the border that have been reintroduced this Congress and have a chance of passing now that Republicans have a trifecta.
The FairTax Act of 2025 proposes a 23% national sales tax, with exceptions for used and intangible property, as well as property purchased for business, government, export, or investment purposes. “Lawful U.S. residents” would be eligible for a monthly sales tax rebate based on certain poverty and family size criteria.
Carter introduced the bill in 2023, but it was never considered in committee. The current co-sponsors of the 2025 bill are Representatives. 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 fair tax and the repeal of the income tax has lasted decades. During the 2005 tax reform debate under then-President George W. Bush, experts warned that a FairTax would raise less revenue than the current tax system and force significant cuts to the federal government.
For a long time, grassroots conservatives have championed the FairTax, emphasizing the importance of lower taxes and less government.
In 2010, Republican “Tea Party” lawmakers took control of the House, promising dramatic cuts to President Barack Obama’s tax and spending policies.
However, by 2018, the House Tea Party Caucus had disbanded, and many of the lawmakers from that wave had denounced the term “tea party”.
Democrats are likely to oppose the bill. In 2023, Democratic then-Rep. Wiley Nickel, along with Reps. Eric Sorensen (D-IL) and Brittany Pettersen (D-CO), held a press conference blasting the proposed 23% tax and introduced a resolution opposing a national sales tax.
Instead, the Democrats advocated for a tax cut for middle-class families, with a companion Democratic-led resolution introduced in the Senate.
“A 30% sales tax would be a disaster for working families and individuals in North Carolina and around the country who are already dealing with high gas prices, exorbitant housing costs, and the rising costs of goods and everyday services,” Nickel told CNN at the time.
