The FairTax plan is a comprehensive proposal that replaces all federal income and
payroll based 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 replacement, and, through
companion legislation, the repeal of the 16th Amendment. This nonpartisan legislation
(HR 25/S 296) 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 IRS is disbanded and defunded.
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.
Compare:
The current tax system
Pres. Obama's Tax Plan
and the FairTax
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The National FairTaxwebsite
has many resources that will help you learn more about the FairTax.
Here are direct links to some of those resources:
Research Papers; The effects of the FairTax on various segments of the economy.
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