Individual Tax Freedom Act of 2001

H.R. 2717, the Individual Tax Freedom Act of 2001, proposes a fundamental overhaul of the American tax system by repealing federal income, estate, and gift taxes and replacing them with a national 15 percent sales tax on goods and services. Under this legislation, the Internal Revenue Service (IRS) would be phased out and replaced by new bureaus dedicated to administering the sales tax and remaining excise taxes.

For the average citizen, this bill would eliminate the requirement to file annual income tax returns, shifting the tax burden from what individuals earn to what they spend. To offset the impact on lower-income households, the bill includes a sales tax rebate for eligible family units and provides credits for certain purchases, such as used property. Additionally, the bill would require a supermajority vote in both the House and Senate to increase the national sales tax rate in the future.