The FairTax plan is a comprehensive proposal that replaces all federal income and payroll _base_d taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.
The FairTax Act (HR 25, S 1025) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.
The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.
The FairTax:
* Enables workers to keep their entire paychecks * Enables retirees to keep their entire pensions * Refunds in advance the tax on purchases of basic necessities * Allows American products to compete fairly * Brings transparency and accountability to tax policy * Ensures Social Security and Medicare funding * Closes all loopholes and brings fairness to taxation * Abolishes the IRS
We offer a library of information throughout this Web site about the features and benefits of the FairTax plan. Please explore!
The FairTax Five
The gloves are off as critics try to pick apart the FairTax. Trouble is, it's just a replay of the same five FairTax myths:
* "The 23% rate is misleading. It's actually 30%" Well, actually... * "It's not enforceable and evasion will be rampant" Well, actually... * "It will not be revenue neutral at 23%" Well, actually... * "The FairTax is not politically viable" Well, actually... * "The FairTax is regressive and shifts the tax burden onto lower and middle income people" Well, actually...
