What is the FairTax?

 

  1. A national retail sales tax on new goods and services with a universal refund for the tax on the basic necessities of life.
  2. Replaces income and payroll taxes including personal, gift, estate, capital gains, Alternative Minimum, Social Security/Medicare, self-employment, and corporate taxes.
  3. Receive full paycheck: No federal deductions from an employee’s wages.
  4. Embedded federal taxes (~$22%) are eliminated from the costs of goods and services.
  5. The FairTax (23%) is introduced into the costs of goods and services.
  6. Prices remain about the same but federal taxes are paid just by making a purchase.
  7. Every family receives a Prebate, a refund in advance for 23% of the Family Spending Allowance (“Poverty Level”) depending only on the make-up of each family unit.
  8. Purchasing power rises 10-20%.
  9. Used goods are untaxed.
  10. Completely untaxes the poor.
  11. Purchasing base will enable more complete funding of Social Security and Medicare.
  12. Reduces compliance costs.
  13. Revenue neutral to the current system.
  14. Calls for elimination of the IRS and repeal of the 16th Amendment.
  15. Illegals, tourists, underground, and cash economy will all now pay taxes.
  16. More transparent system.
  17. Will change focus from avoiding taxes to making money!

The FairTax is the most researched, most comprehensive solution to our income tax problem.  Fairtax.org is the number one source for information on the FairTax, and we’ve provided a directory to some common questions and objections below:

(All links open in a new window, in PDF format)

(Click Here to Download Free Adobe Reader)

Nationally Syndicated talk-show host Neal Boortz and Congressman John Linder laid out the FairTax in its entirety in their book, “The FairTax Book.” It is the most informative single source for the FairTax — a must read for everyone that pays taxes.

Boortz and Linder have also rebuffed the critics in their latest book, “The FairTax: The Truth: Answering the Critics.” The FairTax has over $20 million of research behind it and has been endorsed by economist after economist as the best solution to our income tax crisis.