From www.kiplinger.com: (US context) The Fair Tax Act of 2025 seeks to abolish the IRS by replacing personal and corporate income taxes with a national sales tax of 23%, potentially rising to 30%.

Critics argue that this consumption tax is regressive and would disproportionately affect low- and moderate-income households, while failing to generate sufficient revenue to replace other federal income sources.

The proposal has historically struggled to gain traction in Congress, and current economic predictions suggest that it could destabilise fiscal policies in the U.S.