- Nov 26, 2011
- 123,644
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Something to sink your teeth into:
Fair Tax Act of 2011: Read The Bill: H.R. 25 - GovTrack.us
Fair Tax Act of 2011: Read The Bill: H.R. 25 - GovTrack.us
SEC. 101. INCOME TAXES REPEALED.
Subtitle A of the Internal Revenue Code of 1986 (relating to income taxes and self-employment taxes) is repealed.
SEC. 102. PAYROLL TAXES REPEALED.
(a) In General- Subtitle C of the Internal Revenue Code of 1986 (relating to payroll taxes and withholding of income taxes) is repealed.
(b) Funding of Social Security- For funding of the Social Security Trust Funds from general revenue, see section 201 of the Social Security Act (42 U.S.C. 401).
SEC. 103. ESTATE AND GIFT TAXES REPEALED.
Subtitle B of the Internal Revenue Code of 1986 (relating to estate and gift taxes) is repealed.
TITLE II--SALES TAX ENACTED
‘SEC. 101. IMPOSITION OF SALES TAX.
‘(a) In General- There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.
‘(b) Rate-
‘(1) FOR 2013- In the calendar year 2013, the rate of tax is 23 percent of the gross payments for the taxable property or service.
‘(2) FOR YEARS AFTER 2013- For years after the calendar year 2013, the rate of tax is the combined Federal tax rate percentage (as defined in paragraph (3)) of the gross payments for the taxable property or service.
‘(3) COMBINED FEDERAL TAX RATE PERCENTAGE- The combined Federal tax rate percentage is the sum of--
‘(A) the general revenue rate (as defined in paragraph (4)),
‘(B) the old-age, survivors and disability insurance rate, and
‘(C) the hospital insurance rate.
‘(4) GENERAL REVENUE RATE- The general revenue rate shall be 14.91 percent.