Rep. 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 abolish the IRS and repeal the federal income tax. If signed into law, the FairTax Act would levy a tax on spending itself, “capturing the underground economy, tourism dollars, and purchases made by illegal immigrants,” according to a fact sheet from Carter’s office.

“The FairTax will have widespread benefits throughout our economy, not the least of which is forcing illegal immigrants to pay their fair share in taxes,” Carter said in an exclusive statement to the Washington Examiner. “This will eliminate instances of illegal immigrants using taxpayer-funded resources without paying into the system while also empowering Americans to choose their tax rate.

“I’m all for the repatriation of illegal immigrants; but, as long as they’re here, they should be taxed,” the Georgia Republican added.

The bill joins several pieces of legislation targeting immigration or the border that are being reintroduced this Congress and have a shot at passing now that Republicans will have a trifecta.

Under the FairTax Act of 2025, there would be 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 receive a monthly sales tax rebate based upon certain criteria related to poverty guidelines and family size.

Carter introduced the bill in 2023 but it was never taken up in committee. The current co-sponsors of the 2025 bill are 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 debate for a FairTax and to repeal the income tax has been a decades-long fight. 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 drastic cuts to the federal government.

Grassroots conservatives have been champions of the FairTax for a while, pushing their mantra of fewer taxes and less government. In 2010, Republican “Tea Party” lawmakers took control of the House and promised drastic cuts to taxes and spending policies rolled out by President Barack Obama.

But by 2018, the House Tea Party Caucus dissolved, and many of the lawmakers from that wave blasted the “tea party” label.

Democrats will likely be against the bill. In 2023, then-Rep. Wiley Nickel (D-NC) and Reps. Eric Sorensen (D-IL) and Brittany Pettersen (D-CO) held a press conference blasting the proposed 23% tax and introduced a resolution to oppose a national sales tax. Instead, the Democrats preferred 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 said at the time.