In the 109th and 110th Congresses, Linder took a leadership role in the effort to enact fundamental tax reform. His legislation, the "Fair Tax Act, 2005" () and the "Fair Tax Act, 2007" (), was a proposal for changing United States tax laws to replace all federal personal income taxes, payroll taxes, corporate taxes, capital gains taxes, self-employment taxes, gift taxes and inheritance taxes with a national retail sales tax and monthly tax rebate to households of citizens and legal resident aliens.