Summary of HR 25/S 1493

• Imposes a 23% (tax-inclusive) sales tax on the purchase of new goods and services in the U.S.

• Lets workers keep their entire paycheck and retirees keep their entire pension.

• Abolishes the IRS and ends all audits of individual taxpayers.

• Replaces the federal income tax. Frees individuals from ever filing a tax return again.

• Replaces all payroll taxes including Social Security and Medicare taxes. Current Social Security and Medicare benefits would not change.

• Replaces corporate and self-employment taxes.

• Eliminates all hidden federal taxes.

• Provides a universal rebate equal to the sales taxes paid on essential goods and services to ensure that no American pays taxes on necessities.

• Replaces all estate, gift, and capital gains taxes.

• Dramatically lowers tax rates for low- and middle-income Americans.

• Closes all tax loopholes.

• Brings accountability to tax policy.

• Lets American-made products compete fairly.