HR 25

112th CONGRESS
1st Session

H. R. 25

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.

IN THE HOUSE OF REPRESENTATIVES

January 5, 2011

Mr. WOODALL (for himself, Mr. PRICE of Georgia, Mr. BOREN, Mr. KING of Iowa, Mr. AKIN, Mr. BILBRAY, Mr. CARTER, Mr. CONAWAY, Mr. DUNCAN of Tennessee, Ms. FOXX, Mr. MCCAUL, Mr. OLSON, Mr. THORNBERRY, Mr. SULLIVAN, Mr. GINGREY of Georgia, Mr. BARTLETT, Mr. YOUNG of Alaska, Mr. CRENSHAW, Mr. WESTMORELAND, Mr. BILIRAKIS, Mr. POE of Texas, Mr. GRAVES of Georgia, Mr. NEUGEBAUER, Mr. MILLER of Florida, Mr. WITTMAN, Mr. KINGSTON, Mr. STUTZMAN, Mr. FLAKE, Mr. LONG, Mr. STEARNS, Mr. WALBERG, Mr. ROSS of Florida, Mr. ISSA, Mr. BROOKS, Mr. NUGENT, Mr. SCOTT of South Carolina, Mr. FARENTHOLD, Mr. DUNCAN of South Carolina, Mr. BISHOP of Utah, Mr. PENCE, Mrs. ADAMS, Mr. MICA, Mrs. MYRICK, Mr. BURTON of Indiana, Mr. CULBERSON, Mr. LANKFORD, Mr. POMPEO, and Mr. GARY G. MILLER of California) introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

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.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

TITLE I--REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND ESTATE AND GIFT TAXES

TITLE II--SALES TAX ENACTED

TITLE III--OTHER MATTERS

TITLE IV--SUNSET OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED

SEC. 2. CONGRESSIONAL FINDINGS.

TITLE I--REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND ESTATE AND GIFT TAXES

SEC. 101. INCOME TAXES REPEALED.

SEC. 102. PAYROLL TAXES REPEALED.

SEC. 103. ESTATE AND GIFT TAXES REPEALED.

SEC. 104. CONFORMING AMENDMENTS; EFFECTIVE DATE.

TITLE II--SALES TAX ENACTED

SEC. 201. SALES TAX.

`Subtitle A--Sales Tax

`Chapter 1. Interpretation; Definitions; Imposition of Tax; etc.

`Chapter 2. Credits; Refunds

`Chapter 3. Family Consumption Allowance

`Chapter 4. Federal and State Cooperative Tax Administration

`Chapter 5. Other Administrative Provisions

`Chapter 6. Collections; Appeals; Taxpayer Rights

`Chapter 7. Special Rules

`Chapter 8. Financial Intermediation Services

`Chapter 9. Additional Matters

`SEC. 1. PRINCIPLES OF INTERPRETATION.

`SEC. 2. DEFINITIONS.

`CHAPTER 1--INTERPRETATION; DEFINITIONS; IMPOSITION OF TAX; ETC.

`SEC. 101. IMPOSITION OF SALES TAX.

`SEC. 102. INTERMEDIATE AND EXPORT SALES.

`SEC. 103. RULES RELATING TO COLLECTION AND REMITTANCE OF TAX.

`CHAPTER 2--CREDITS; REFUNDS

`SEC. 201. CREDITS AND REFUNDS.

`SEC. 202. BUSINESS USE CONVERSION CREDIT.

`SEC. 203. INTERMEDIATE AND EXPORT SALES CREDIT.

`SEC. 204. ADMINISTRATION CREDIT.

`SEC. 205. BAD DEBT CREDIT.

`SEC. 206. INSURANCE PROCEEDS CREDIT.

`SEC. 207. REFUNDS.

`CHAPTER 3--FAMILY CONSUMPTION ALLOWANCE

`SEC. 301. FAMILY CONSUMPTION ALLOWANCE.

`SEC. 302. QUALIFIED FAMILY.

`SEC. 303. MONTHLY POVERTY LEVEL.

`SEC. 304. REBATE MECHANISM.

`SEC. 305. CHANGE IN FAMILY CIRCUMSTANCES.

`CHAPTER 4--FEDERAL AND STATE COOPERATIVE TAX ADMINISTRATION

`SEC. 401 AUTHORITY FOR STATES TO COLLECT TAX.

`SEC. 402. FEDERAL ADMINISTRATIVE SUPPORT FOR STATES.

`SEC. 403. FEDERAL-STATE TAX CONFERENCES.

`SEC. 404. FEDERAL ADMINISTRATION IN CERTAIN STATES.

`SEC. 405. INTERSTATE ALLOCATION AND DESTINATION DETERMINATION.

`SEC. 406. GENERAL ADMINISTRATIVE MATTERS.

`SEC. 407. JURISDICTION.

`CHAPTER 5--OTHER ADMINISTRATIVE PROVISIONS

`SEC. 501. MONTHLY REPORTS AND PAYMENTS.

`SEC. 502. REGISTRATION.

`SEC. 503. ACCOUNTING.

`SEC. 504. PENALTIES.

`SEC. 505. BURDEN OF PERSUASION AND BURDEN OF PRODUCTION.

`SEC. 506. ATTORNEYS' AND ACCOUNTANCY FEES.

`SEC. 507. SUMMONS, EXAMINATIONS, AUDITS, ETC.

`SEC. 508. RECORDS.

`SEC. 509. TAX TO BE SEPARATELY STATED AND CHARGED.

`SEC. 510. COORDINATION WITH TITLE 11.

`SEC. 511. APPLICABLE INTEREST RATE.

`CHAPTER 6--COLLECTIONS; APPEALS; TAXPAYER RIGHTS

`SEC. 601. COLLECTIONS.

`SEC. 602. POWER TO LEVY, ETC.

`SEC. 603. PROBLEM RESOLUTION OFFICES.

`SEC. 604. APPEALS.

`SEC. 605. TAXPAYER RIGHTS.

`SEC. 606. INSTALLMENT AGREEMENTS; COMPROMISES.

`CHAPTER 7--SPECIAL RULES

`SEC. 701. HOBBY ACTIVITIES.

`SEC. 702. GAMING ACTIVITIES.

`SEC. 703. GOVERNMENT PURCHASES.

`SEC. 704. GOVERNMENT ENTERPRISES.

`SEC. 705. MIXED USE PROPERTY.

`SEC. 706. NOT-FOR-PROFIT ORGANIZATIONS.

`CHAPTER 8--FINANCIAL INTERMEDIATION SERVICES

`SEC. 801. DETERMINATION OF FINANCIAL INTERMEDIATION SERVICES AMOUNT.

`SEC. 802. BAD DEBTS.

`SEC. 803. TIMING OF TAX ON FINANCIAL INTERMEDIATION SERVICES.

`SEC. 804. FINANCING LEASES.

`SEC. 805. BASIC INTEREST RATE.

`SEC. 806. FOREIGN FINANCIAL INTERMEDIATION SERVICES.

`CHAPTER 9--ADDITIONAL MATTERS

`SEC. 901. ADDITIONAL MATTERS.

`SEC. 902. TRANSITION MATTERS.

`SEC. 903. WAGES TO BE REPORTED TO SOCIAL SECURITY ADMINISTRATION.

`SEC. 904. TRUST FUND REVENUE.

`SEC. 905. WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS.

SEC. 202. CONFORMING AND TECHNICAL AMENDMENTS.

`SEC. 6161. EXTENSION OF TIME FOR PAYING TAX.

`SEC. 6601. INTEREST ON OVERPAYMENTS AND UNDERPAYMENT.

`SEC. 7451. FEE FOR FILING PETITION.

TITLE III--OTHER MATTERS

SEC. 301. PHASE-OUT OF ADMINISTRATION OF REPEALED FEDERAL TAXES.

SEC. 302. ADMINISTRATION OF OTHER FEDERAL TAXES.

SEC. 303. SALES TAX INCLUSIVE SOCIAL SECURITY BENEFITS INDEXATION.

TITLE IV--SUNSET OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED

SEC. 401. ELIMINATION OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED.

END