Do you live in a state that has a high sales tax? A state that imposes no sales tax at all? Consumption tax, the category that includes sales tax, is often a footnote at the end of a receipt, but it can impact your wallet all the same.

A group of House Republicans is looking to raise sales taxes with the FairTax Act, which would abolish the Internal Revenue Service and replace income tax and other levies with a national sales tax. The measure still does not have broad GOP support and is unlikely to pass. It would need to not only make it through the House but also the Senate, which has a Democratic majority. President Joe Biden has already said he would veto the bill should it reach his desk.

With tax season upon us, here’s everything you need to know about a national consumption tax.

What is a national consumption tax?

Consumption tax is a tax on goods or services – what you spend, rather than what you earn. In the U.S., consumption tax comes in the form of retail sales tax and excise tax (tax imposed on certain goods or activities, like alcohol or fuel).

A national consumption tax would create a federal tax on consumer goods, possibly to be emphasized over (or even replace) income and payroll tax, which funds Social Security, Medicare and other government programs.

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Does the U.S. have a national consumption tax?

The U.S. does not currently have a national consumption tax. Other countries do, including Japan, which has a 7.8% standard and 6.24% reduced tax rate for items like food, drink and some newspapers. Over 170 countries, including all of Europe, impose a Value-Added Tax, which taxes goods and services at each stage of production.

Consumption taxes in the U.S. are on a state-by-state basis. Almost every state imposes sales tax except for Alaska, Delaware, Montana, New Hampshire, and Oregon, which instead allows cities to charge a local sales tax. California boasts the country’s highest state sales tax rate at 7.25%.

Some House Republicans are trying to change this. The FairTax Act would eliminate most current federal taxes in favor of a 23% federal sales tax. HR25 would abolish the IRS as well as individual and corporate taxes, payroll taxes, estate taxes and capital gains. Tax experts warn it would mostly benefit the wealthy, who would see major tax cuts, CBS reported.

The bill faces staunch opposition from both sides, including from Senate Majority Leader Charles Schumer, who called it "a real doozy."

“It cannot be understated how devastating this would be to just about every family,” Schumer said.

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This article originally appeared on USA TODAY: What is national consumption tax? How it differs from income tax.