 The legislation would remove the Internal Revenue Service ( after three years ) , and establish Excise Tax and Sales Tax bureaus in the Department of the Treasury . The states are granted the primary authority for the collection of sales tax revenues and the remittance of such revenues to the Treasury . The plan was created by Americans For Fair Taxation , an advocacy group formed to change the tax system . The group states that , together with economists , it developed the plan and the name " Fair Tax " , based on interviews , polls , and focus groups of the general public . The FairTax legislation has been introduced in the House by Georgia Republicans John Linder ( 1999 – 2010 ) and Rob Woodall ( 2011 – 2014 ) , while being introduced in the Senate by Georgia Republican Saxby Chambliss ( 2003 – 2014 ) . 
