1. United States
2. Mich.
3. Letter

The FairTax Act of 2025 proposes repealing the federal income tax, payroll taxes, estate and gift taxes, and enacting a national 23% sales tax on the use or consumption of taxable property and services. It aims to reform the tax code, promote economic growth, and simplify tax administration. However, there are significant concerns about its potential regressivity and impact on lower-income households. Careful analysis of the distributional effects and implementation challenges is warranted before such a sweeping overhaul of the tax system. While this legislation tackles longstanding issues with the current tax code, the high tax rate on consumption could disproportionately burden those with lower incomes who spend a larger portion on taxable goods and services. Provisions like the monthly family consumption allowance rebate aim to offset this, but may not fully compensate. There are also complex transition issues, like taxation of existing assets and inventory. Overall, the FairTax presents an ambitious reimagining of how to fund the federal government. But its merits compared to reforming the existing system, rather than replacing it entirely, deserve rigorous debate. Any tax reform plan should be evaluated for its fairness, economic impact, and ability to raise sufficient revenue to fund vital public services and priorities. This bill raises important issues that should be carefully examined through that lens. Congress should approach such a dramatic restructuring of federal taxation with prudence and impartiality to assess all perspectives.